End Of Day Or Intraday Trading Strategies?
We have no idea why some traders wish to sit at their monitor for umpteen hours a
day trading umpteen numerous markets on a 5 minute time-frame or lower. In and out of Cable, Long the FTSE, an hour after Gold on the Short side - Why?
There are a lot of dis-advantages to Intraday trading strategies and when compared to End Of Day (EOD) trading strategies hopefully it will be obvious why we favor the latter.
SCREEN TIME
The most obvious and influential reason.
There are factually hundreds if not thousands of markets to trade nowadays. Technology and Broker competition puts us individuals in, almost, the same boat as the 'big fish'. However, we do not suggest that someone would want to trade all of these instruments, we are simply making the point that there are many to choose from.
Based on this view alone, the most logical approach and the one we prefer is End Of Day (EOD) trading, we call this 'Set Time' as EOD is different all around the world. With this approach we select our markets of choice, then, at a Set Time each day we apply our trading logic and react accordingly. If there are no trades we walk away and enjoy the rest of the day, if there is a valid setup, we place our order/execute our trade and again, forget about it. By focusing on the range of instruments available to us instead of the lower time-frame charts we expand our options for trading opportunities without needing to spend any more time at our screens.
It makes sense, why go crazy 'screen watching' all day, we have been there, done that, got the T-Shirt. We are currently certainly older and we think a little wiser.
All Trading systems and Signal services we trade need less than quarter of an hour a day screen time and it is rare that we would ever trade anything that takes up more time than this. This is not because we are lazy, it's because we don't have to, trading is about making a return and having a life.
OTHER REASONS
The Spread - Consider how much you shell out each time you are in and out of a trade! Trade 5 times each day with a 2 pip spread - that's 10 pips every day. If one is trading with a 10 pip stop, each time you place a trade you are wasting 20% of that trade on spread. Compare this with Set Time (EOD) trading, one trade a day, a 2 pip spread with a 50 pip stop, 4% in spread. More trading to us does not mean more chance of being profitable, it entails shelling out more in spreads/commissions.
Volatility/Whip-saws - Trading Intra-day we make use of tighter stops and get shaken out of trades, trading Set Time (EOD) systems our stops are larger and therefore we are not whipsawed in and out of trades. Trading Intra-Day means you have to accept volatility, trading at a Set Time means it is less likely to affect your positions. Like-wise, screen time is reduced, the cost of doing business is less and generally, one's lifestyle, is much better.
Summing up
Please don't think for one minute we are lazy individual. We put a lot of time and effort into our trading in terms of system selection and, thereafter, execution of that system. Our point is that, having selected a specific trading approach, effort, in terms of executing that strategy and screen-time, should be minimal.
In our opinion there are ample opportunities in this environment across the numerous different markets and higher time-frames (1 hour +). We do not have to be tied to our screens all day to make a profit. And, anyway, it costs less (in dealing costs), it gives is more free time and we are less prone to market noise (volatility).
Every review we undertake we classify the system into Set Time (EOD) and Intra-day, or the half-way house, Set Times (more than once a day but at given times). Hopefully now you understand the reasons we have a bias towards Set Time/Times systems.
by: TatianaU
Strategies To Produce Large Quantity Of Revenue On The Net Cieaura Explosion Strategies Exposed Stop Biting Nails: Strategies If You Bite Your Nails As A Habit Basic Strategies In Starcraft 2 Effective Strategies For Coping With Deafness Why You Need The Latest Starcraft 2 Strategies Why You Need Starcraft 2 Strategies How To Choose A Starcraft 2 Strategies Resource Should You Invest In A Starcraft 2 Strategies Guide? Where To Get Starcraft Ii Strategies How To Find Good Starcraft Ii Strategies How Can Starcraft Ii Strategies Help You? Quickly Zits Remedy Strategies