Long Term Trading
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  1. #1
    Join Date
    May 2006

    Default Long Term Trading

    Hi! I want to share this with you (from longtermtrading.com), it is one benefit of long term trading which combines the use of long term and short term trading:

    Long Term Trading Can Provide Additional Diversification for Shorter
    Term Traders

    Almost every trader understands the importance of diversifying trading across many different commodities. Some larger advanced traders even diversify across trading systems. For instance, one may use a breakout trend following system in conjunction with a system designed to function in consolidating markets. Few traders, however, are adequately diversified across different trading time frames. For instance, if you normally trade short term swings of 1-5 days or day trade, the long-term approach to trading can provide a unique element of diversification not found in other shorter term trading systems. This diversification can increase overall trading profits while reducing drawdown on an absolute dollar and percentage basis.

  2. #2
    Join Date
    Jun 2006
    What I understand by this is that funds should be diversified so that when one trade loses, you still have another way to get it back through another kind of trading, am I right, geline?

  3. #3
    Join Date
    Jun 2006
    You are right, Angelo and this is one of the best things to remember when risking your money in any way. The other thing is: Never spend what you can't afford to lose - this is my motto when it comes to investing.

  4. #4
    Join Date
    Jun 2006
    Thanks for this churchille, I think it will also be my motto. I know I must always keep that in mind before I lose an amount that I can't afford.

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