Which is better, short-term trading, swing trading, or trend trading?
This problem has actually troubled me for two full years, and I believe it is even more confusing for some beginners. Especially when the short-term is not doing well, I want to switch to the swing band. It is hard to make money in the swing band. If a retracement takes most of the profits, I think this band is too tortured. Start switching again. Repeatedly like this... In the end, it is still unclear how long the market cycle is. It's not for everyone to settle down, but at least you have to be clear about your position, what kind of trader are you mainly. So what kind of trading method is correct? I am here to say that there is no formula or method, and you must try one of your main operating cycles.
Here is my understanding of these three trading cycles.
Short-term trading: Generally, the intraday market is done with a maximum period of four hours and 30 minutes or 15 minutes as the entry point to seize the wave of the day's market and leave, even without considering holding positions overnight and occasionally holding positions overnight. Others say that if you do the market for five minutes, you can run after grabbing 20 points. In my case, the definition is ultra-short-term trading.
Swing trading: Take the daily line as the cycle, four hours and one hour as the basis for entering the market. The holding cycle may be in one week, two weeks or even one month. When the swing is in place or you get the point you want, you will exit the market.
Trend trading: It is an extension of swing trading. The general trend trading may look at the weekly and monthly lines and the four-hour period of the daily line as the entry point, and the holding period may be several months or even more than a year.
But these three trading modes are all mutual. Short-term trading also includes small-period swings. There are countless short-term trading bands and trend trading in swing trading, including at least three swing trading or even more.
Here I will talk about my experience. Ultra-short-term trading is almost impossible to make money. Commission fees may kill you. In addition, it is generally difficult to achieve a suitable profit-loss ratio in ultra-short-term trading. The winning rate is very high and I can't bear the loss of a few orders. If you don't discuss it here, pass him off.
So which way is better? The answer is clear or not clear. It has a great relationship with personal character and experience. If you are a novice or have a bad temper or short-term temper, then I suggest you to do short-term trading within the day. Because of swing trading, it is very difficult for you to hold positions. If you are usually busy and have no time to watch the market and do not want to watch the market, then consider doing the swing for a few days. If you want to follow the trend from the beginning of entering the market, then keep doing the trend. It was not clear just now, but in most cases he is clear, because this is related to himself, it is clear for you, it is not clear for you and the public. I don't want to give an ambiguous answer, and analyze it in depth again.
All of the above are closely related to your own financial situation. Why do you say that? Everyone wants to enter this market to make money, or we need to accumulate experience and capital in this market in the early stage. Short-term trading is very suitable for those traders, because there are relatively many short-term trading opportunities, which help you quickly accumulate experience and capital. There are much fewer opportunities for swing trading, and there may be no chance to place an order for a week or two. The effect of accumulating experience will be much worse if the order does not enter the market. Not to mention the big trend trading, there are fewer opportunities, and you can just touch less if you don’t have a certain amount of funds.
Here, in order to explain this issue more clearly, I will talk about the process of trying to understand this issue. At that time, I only had $2,000 in funds, and I was thinking about which method was more suitable for me. After a period of short-term work, I didn’t make any money. I thought it was wrong for the band. The band made money at the beginning, and the book said let the profits run When I got up, I patiently held the position, and the result was a sharp pullback, and I gave back most of my profits. After holding it for half a month, I didn’t make a penny. I was so upset that I might as well lose the profit.
Back to the short-term again, for a full two years, switching again and again. It's very confusing.
After watching the Kuomintang-Communist War, I figured it out. There were not many fighters in the early stage of the Communist Party, and the lack of sophisticated equipment was basically a situation of millet and rifles. But what he needed to do was to fight guerrillas and kill a group of enemies and seize some equipment and run away. Several years of guerrilla warfare has accumulated some mass base and wealth, and then we can organize some medium-scale war strength. When the medium-scale war is won, the mass base will be larger, and there will be more firearms and equipment, then we can engage in large-scale frontal wars. confronted. The three major battles are the accumulation of guerrilla warfare with millet and rifles in the early stage. Guerrilla warfare is short-term trading to quickly accumulate experience and materials. The Hundred Regiments War means that the accumulation of swing trading experience, strength and funds will develop and grow rapidly to a certain extent. The three major battles are trend trading, and the outcome will be determined in one round.
So to understand it for a while, when you have insufficient financial strength and insufficient experience, you need to fight a few more small battles to accumulate experience and funds. But these are just accumulations. Don't think about winning big and making big money. If you accumulate to a certain level later, you will have to engage in wave bands. The real funds are several million dollars, and only large bands and major trends will have the opportunity to engage in them. Don’t just want to engage in swings and trends with a few hundred dollars, because you don’t have the ability to confront directly now (it’s basically impossible to engage in swings with small stop losses) and don’t want to engage in short-term trading with millions of dollars.
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