The best time-frame for trading. Universal. The most profitable. Undisputable. Wouldn’t that be cool of something like that existed?
Long trades can last for months. It is a slow process that can even last for years. That is how long it can get. Is better suited for larger investments and bigger accounts.
- You don’t have to watch the markets every day;
- Fewer transactions mean that you rarely have to pay the spread;
- You have more time to think about each trade.
Usually 1 or 2 two goods a year are traded so PATIENCE is a must-have;
Bigger account needed to execute long term trades;
Frequent months when you are going to be losing.
Short trades [swing].
The longest that a short trade cam last is a week. These are the trades that are executed pretty fast when compared to the long trading.
- More opportunities for trades.
- Less chance of losing months.
- Less reliance on one or two trades a year to make money
Transaction costs will be higher (more spreads to pay).
Overnight risk becomes a factor
Intraday trades are for those who prefer trades so fast that they are executed in a link of an eye. These are the trades that last for 15 minutes tops. Trade like that require high skill. Very high skill.
- Big amount of trading opportunities;
- Less chance of coming across losing months;
- No overnight risk.
Transaction costs are much higher and we have to pay more spreads;
It is more difficult mentally;
Profits are limited by the need to exit at the end of every day;