| One of the surest roads to success in trading is | | | | trading therefore traders do not waste money on |
| sticking to a time frame that suits your personality. | | | | broker commissions. |
| Time frames can be summarized best between day | | | | One of the biggest disadvantages of swing trading is |
| trading, swing trading and position trading. Let us take | | | | that traders tend to get emotional tied to their |
| a look at each styles overview in order to help you | | | | position believing they are going to be correct even if |
| decide which is right for you. | | | | the position gets away from them. Even worse is |
| Intraday trading or day trading is also known as | | | | when traders average down into a trade creating |
| scalping and traders places several trades a day | | | | more of then not an even bigger loss. |
| which last for very quick periods of time lasting often | | | | Position trading often known as trend trading is also |
| minutes and sometimes up until hours. Day trades are | | | | known as the buy and hold method where positions |
| generally small in size and are very frequent with | | | | can be opened anywhere from a day until several |
| many trades taken each day. | | | | months or longer. Traders open a position on what |
| The pros of day trading or scalping include smaller risk | | | | looks to be the start of a new trend and actually add |
| per trade through smaller stops losses and take | | | | to that position as the trend develops, taking profits |
| profits. You can make money quicker although it | | | | along the way and adding even more size on |
| takes deep focus in order to day trade. | | | | pullbacks as they resume back toward the trend. |
| There is always risk in trading and while there are | | | | Position trading pros include it is the easiest method |
| upsides to day trading there are also down sides. | | | | to trade and profit from as will as easiest time frame |
| Cons of intraday trading include traders due to | | | | to be able to fit into an active lifestyle. Preparation |
| frequent trading pay a high amount of fees through | | | | can be done at your leisure and traders only require |
| spreads or broker commissions. Also small mistakes | | | | little of their time to actually place any new trades or |
| can turn into large losses if a position gets away | | | | adjust any orders. |
| from a trader and their account can loss a lot of | | | | There is always a downside and when it comes to |
| money in a very short amount of time. | | | | position trading the largest con is that often traders |
| Swing trades can last from anywhere from one day | | | | give back big gains while trying to hold a position for |
| to several days or even weeks. Typically swing | | | | even larger gains. |
| traders try to catch price retraces or trend reversals | | | | Which time frame appeals to you and your |
| using indicators or price action to help tell the tale of | | | | personality? Are you the type of trader who likes |
| the tape. Using swing highs and lows from recent | | | | lots of action and the rush of trading, or maybe do |
| price action traders use these points of reference for | | | | you like the detachment that swing trading or |
| placing their entries and exits. | | | | position trading brings? The first thing aspiring traders |
| The pros of swing trading include it tends to be | | | | need to do is figure out which time frame suits them |
| easier to manage trades than day trading as well as | | | | best before developing a trading method around the |
| more traders are profitable as swing traders. The | | | | time frame. |
| spread has less of an impact than it does on intraday | | | | |