In my opinion, for what it's worth, one of the most important things to establish when entering the world of investment is figuring out what type of trader you are. By that I mean what kind of time frame will you feel most comfortable trading in. Many people are only used to the long term type of IRA investments, but think they might find some benefits in Swing (short term days-weeks) or someone out of college with a small bit of saving might find some benefits in trading short term options. The point is that depending on your personal and time situations you have to figure out what kind of trading will benefit your personality, it is an important step - for many may want to try day trading the Dow or S&P Futures, but can't handle the stress of the day to day ebbs and flows.
Types of trading:
CORE: Longer term (Week's to Months)
Swing: Shorter time frame (Day[s] to Weeks)
Intraday: 1) Minutes to hours
2) Ticks (scalping)
Generally there are are 3 types of trading based on two trading styles (wealth & income). People with longer term trading aspirations wont mind the day to day noise because they are looking to hold for weeks to months (Core). Also falling into the wealth generating style is Swing trading which is a popular type of trading. Swing traders are looking to hold a trade for 1day to a week maybe two. Now traders who are looking for income usually fall into Intra -day traders, which basically means they are looking to implement trades within open hours and are flat when the closing bell rings. Day trading has become a very popular type of trading as of late. There are some restrictions for day trading, the biggest is having a minimum of 25k in your account to be able to trade more than a handful of day trades a week.
Sometimes traders can have a mix of strategies and for that I would recommend separate accounts for each type of trading. For instance I have one account for day & swing trades. One for longer term minded trades. This way when you manage your trades, and use charts you don't have the confusion of time frames. One important thing to keep in mind is that each time frame requires time spent studying and practicing paper and real time. There's a saying in the markets that it will pay you back in the amount of knowledge you enter it with. Take the time to hone on your skills
I hope this is something that makes sense for people out there...
From the pen of Daiz'on end
Important Disclaimer! This website is for entertainment/educational purposes only. Equities, Futures, Options, and Currency Trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Absolutely do not trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell equities, futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in this website. The past performance of any trading system or methodology is not necessarily indicative of future results. Absolutely consult your Registered Financial Advisor and your Risk Trading Plan before ever investing or trading any financial instrument!
Vision Wealth Management
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