To help you recognize the various trading scenarios and sort of dealers we get on the planet, I will use just a tiny illustration. At the Olympics, there are two kinds of runners, the sprinter and the long distance runner. Both are athletes within their area, however much from one another when it comes to doing the 1 thing that they have in common, running.
In exactly the exact same manner we could compare two distinct traders from each other too. And that’s the long-term dealer and short-term dealer. One isn’t right and another one wrong, the two kinds of dealers are making money now. And in trading, that’s vital.
Like both athletes over, the sprinter can’t do exactly what our marathoner is performing, his muscles are assemble for electricity,speed and explosion, his breath is deep and short, ensuring sufficient oxygen moves into his muscles at the shortest period. Similarly, the marathoner can’t operate like our sprinter, his build is for long distance, his breath is deep and long, ensuring that he completes the race with his thighs kolay para kazanma.
When you examine their bodies, they’re developed to precisely fulfill the purpose they’re running for.
The exact same is with trading. 1 system is constructed for brief quick trades giving a great deal of entrances, and one is constructed for moderate to long-term tendencies, providing the best entrances. Every dealer must decide on which kind of trading greatest suite his nature and trading accounts balance. Hence the question is, are you really the in-and-out of this industry kind of individual, or are you the sole, waiting patiently to get a set up, once triggered, acquiring an target-time anticipation of 1,3,6 or perhaps 12 weeks, or are you a buy and hold investor that would like to have a package stocks for another 5 to 10 years.
The challenge is considering what another person/trader/news analyst do. It’s a direct effect in your own trading decisions. From a mental and emotional perspective, the long-term dealer should fight against the short term perspective, and also the short-term dealer should fight against the long-term view. Like, for the previous 9 months that the trend was up, but for the previous 3 months, the trend is down. Now if you’re trading the short term tendency, looking at exactly what the long-term traders do will affect your trading decisions, unless a definite confirmation that the present trend is reversing. Similarly for the long term dealer, after having a trading decision, visiting the short term time period, will have an effect on his choice, in this way, he’ll begin to question it and jump from this trade.
Every sort of dealer has its own window of info to check at. Making conclusions in an end-of-day per night candle and then appearing at a 5 minute candle will make you mad. It’d be like needing to move a boat as large as the Titanic using a speed boat engine.
The largest mistake dealers make is considering the previous 6 months of background to exchange for another 6 months, or examine the past 24 hours to exchange for the upcoming few weeks. It’s not relevant.
In conclusion, as dealers, we can not do both. It’s psychological hopeless, and might seem as if you’ve got a certain degree of success for some season or time, but it isn’t something consistent nor actual. Locate the time period which will best suite your character.
To choose which kind of trader you’re, just take a look at what you could afford to exchange with.