sliderseff
New Member
Mid-term trading is for those who can’t stand having multiple positions a day and who can bear with having open positions while sleeping. Indeed, having money in the game while you are sleeping sounds crazy; however, stop-loss orders enable you to minimize your risk. Therefore, mid-term trading has no real downsides and actually enables you to reduce your trading activity tremendously in comparison to day trading without reducing the amount of profit. In fact, swing traders usually have much bigger position sizes and a much smaller frequency of trades, which is why the profits can be remarkable although you don’t trade as much as day traders.
Nevertheless, swing trading doesn’t mean you have to work less. It just means that you actually spend much more time analyzing your investment instruments than you spend actually entering your trades. Swing traders often look at the monthly, weekly and daily charts and enter trades comparatively seldom. To give a broad overview, swing traders often do only one to twenty trades a year. If you only enter a trade if there are many indicators pointing in the same direction while looking at the bigger timeframes, then your trading activity can be very rewarding. Thus, swing traders often leverage a much bigger position size as their risk-reward ratio is much bigger.
Nevertheless, swing trading doesn’t mean you have to work less. It just means that you actually spend much more time analyzing your investment instruments than you spend actually entering your trades. Swing traders often look at the monthly, weekly and daily charts and enter trades comparatively seldom. To give a broad overview, swing traders often do only one to twenty trades a year. If you only enter a trade if there are many indicators pointing in the same direction while looking at the bigger timeframes, then your trading activity can be very rewarding. Thus, swing traders often leverage a much bigger position size as their risk-reward ratio is much bigger.
