Many traders nowadays are involved in
short term trading. The technological advancement permits us to do
such and even birthed to a new genre this past years. But many may
not notice one thing obvious about this type of trading. The lesser
the time, the lesser the profit.
In our orientation, we may have been
told that short term trading involves a lot of trading opportunities
because every pip can be a profit waiting to be caught. Like fishing,
wherein you may dip your bait in the water every now and then catch
some small fry because a lot are passing by. Yes, I think it is true
but have ever considered the volume of the catch at the end of the
day. Of course you may profit on most trades, but have you put into
the equation the unprofitable ones?
In reality, a big catch may take a
while before it may be caught. It needs time and skills to earn huge.
There's no shortcut to success. Even if you really did great on a
day, how about on the morrow? Can you still repeat it? What I'm
pointing out is that the shorter your time frame is, the more limited
you're from profit. Most successful and seasoned traders knows that
the market may only move significantly small for few minutes but as
time goes by, its movement also widens. A larger movement also means
a larger profit. So before trading short, think again.
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