This post was contributed by a guest author, and does not necessarily
reflect the views of Richard or MovetheMarkets.com
The Lonely Trader wouldn’t be so lonely if he joined the MtM team. I tried to welcome him to this dysfunctional family, but he wasn’t interested. I guess its better to be by yourself than deal with the MtM drama.
Here’s a comment that he left on my post about the mass exodus to swing trading.
My personal experience has been somewhat different. Instead of thinking of things in terms of position trading, swing trading, day-trading or scalping, I think in terms of time horizons. I execute what some people would call a swing strategy on both the daily and one hour time frames, with confirmation from other time frames. I have another on the 5 min time frame that most have called a “scalping” strategy. I consider all of these “trend following” strategies that take advantage of price excursions on their respective time frames. There are advantages and disadvantages to every method, depending on the time frame, frequency of signals, and all that blah. At the end of the month, I am stunned at how much I pay my broker for the short term model. Transaction fees are enormous given the profit factors of these models. On the longer time frames, I have to put up with volatility and lots of backing and filling in the FX markets, which has really changed the way I design my models. But there is the added advantage of positive rollover, which can erase all transaction costs and add profit, besides. I’m not particularly drawn to one time horizon over another, but I am beginning to think I should trade more futures and stocks and less FX. I like the idea of having very specific times to trade in these markets because my time is limited. And there are quite a few bloggers out there who seem to be doing very well at it…
For you chart lovers, he has some good ones up right now. Show him some love, so he won’t be so lonely.
This post was contributed by a guest author, and does not necessarily
reflect the views of Richard or MovetheMarkets.com