Why Trade Long Term?

[dzver]

Originally Posted by topchess

Intraday trading is often choppy, causing a loss for most of us. Trends are more clear in longer term, so I agree with hello1234 on this point.

Regardless of being an amateur or a professional trader, long term trading gives us a fewer trades, more pips. only thing that we have to use very small lots, or start with a big capital.

I aggree 100 % with you.

And one more thing daytrading bring a lot more stress.

Regards

Vladimir.

[generalz]

I have yet to understand why day trading is so popular. It has to be the rush people get. I am learning trading now and clearly long term trading is the way to go for previously stated reasons.. I play poker and play limit to manage risk and I bet sports and bet one-two games a week that I have a edge again risk management...read about W Buffett or Peter Lynch, (Wealthy Americans) and they are long term traders. You can "guess" wrong long term 10 times and be right on the 11th and make profits. (I am not suggesting guessing). If you have a reliable system you can look at the computer 1 time per day and manage long term trades. If you focus on risk management in long term trading your profits will soar when you hit a trend.. sorry, a bit of a ramble but being new I tried day trading and it was not fun.

The good news..
don't have to sit at the computer all day
don't have to be overly concerned about daily news
don't have to be overly concerned about entering and exiting strategy
don't have to be overly concerned about stress
don't have to be overly concerned about not following system rules
Long term systems are fairly simple to manage (mostly indicators driven)

[topchess]

Originally Posted by generalz

your profits will soar when you hit a trend..

I wanted to comment about this sentence in a particular way.
If you use a moderately good long-term system, you will be able to catch those "thousands pips" movements and trends. You can still enter early, at the same time you limit your risk with false signals.

When I look at the GBPUSD trends in a weekly chart for example, it's amazing how you can catch the start of a big uptrend/downtrend, similarly all other pairs.

[rhodytrader]

I am definitely in agreement with lots of what's been said. I generally consider myself a part-time trader. By that I mean I look at the charts periodically to see if there's anything interesting. If there is, I'll put on a trade or at least place an order if a set-up is forming. Sometimes that's a position trade. Sometimes it's a swing, or even a day trade. It depends on my schedule. That's the great thing about using technical analysis. I can apply the same techniques regardless of the timeframe I'm operating in at any given point.

The point is that I can't or don't want to spend hours on end in front of the screen. Position trading means using wider stops, but I just reduce my position size to get the risk I'm willing to take on a given trade. I certainly don't mind risking 100-200 pips for the opportunity to make 3-5 times that!

[wodwave]

Thats also my strategy. Set up a system to check out once a day and leave it alone until next day. I think the weekly and daily charts are better for the trading but I could not figure out a good system to do it. I am trying...

Someone has a suggestion?

Success!

[swordofrue]

Originally Posted by wodwave

Thats also my strategy. Set up a system to check out once a day and leave it alone until next day. I think the weekly and daily charts are better for the trading but I could not figure out a good system to do it. I am trying...

Someone has a suggestion?

Success!

The Vegas 4 hour would probably do you well. There also is a Vega weekly right?

Topchess, those 1,000 pip moves on Cable look nice. I actually think I will implement longer term trading with cable but still stick with short term trading with EUR

[hello1234]

it is evident that success comes from long term trading with higher time frames and than sitting tight till trade is over but if all of us agree than lets present some system that can help traders in this direction. lets create some system based on daily charts with position holding period from a week to two months. if some one have please do present here for discussion.
long term trading is the only gate way to success. when we talk of this thing that 95 % traders loose money in there quest to earn or build wealth. we are actually talking of day traders. it is the most difficult thing one can ever imagine that day trading is really something not for every one.

[wodwave]

Originally Posted by swordofrue

The Vegas 4 hour would probably do you well. There also is a Vega weekly right?

Topchess, those 1,000 pip moves on Cable look nice. I actually think I will implement longer term trading with cable but still stick with short term trading with EUR

There are good systems for 4h (including Vegas 4h) but for daily graphs I know just one that it is really discussed, the fozzy (one that I didnt like).

Check 4h graphs once a day can not be a good idea. Weekly systems I think it is too long term

That is a opportunity to discuss a daily system.

[topchess]

You are right. The weekly chart is giving a larger drawdawn. But, it's very useful for trend confirmation from Daily signals.

[rhodytrader]

Originally Posted by hello1234

..long term trading is the only gate way to success. ..

I'm not going to agree with that statement at all. There are plenty of people who do very well trading short-term. It's all a question of matching your trading timeframe to your personal situation and style.

Now, having said that, my biggest trading successes have always been in longer-term trades. I'm not even talking daily chart stuff here. I'm talking weekly and even monthly at times. My personal methodology incorporates using volatility to spot trends getting ready to develop.