In This Chapter
Understanding the time horizons of trading
Discovering the ins and outs of day trading
Getting familiar with swing trading
Checking out the longer process of investing
One of the most important decisions you’ll make as a trend trader is choosing a time horizon you want to trade in. The time horizon refers to the length of time you expect to hold onto your trades. Do you want to be a short-term trader (a day trader), an intermediate-term trader (a swing trader), or a long-term trader (an investor)?
In this chapter, I share with you the advantages and disadvantages of trading each time horizon and help you decide which may be most suitable for you.
Students at my seminars sometimes ask, “What is the trend of the market right now?”
That question is impossible to answer because the trend is relative to the time interval of the chart. You must decide your chosen time horizon before you can evaluate your trading signals or even something as simple as determining whether the trend is up or down. ...