subject: Day Trading Vs. Position Trading the Forex [print this page] Day Trading VsDay Trading Vs. Position Trading the Forex
Many new traders "believe" that trading longer timeframes such as 1 hour 4 hour daily charts are more profitable, more reliable and easier to do.
They also believe that shorter timeframes, such as the 1m 5m 15m charts are where people lose their shirts. They, for some reason, think that trading these timeframes is "suicidal" and "crazy" because they are harder, faster, and less reliable than the longer timeframes.
So in essence they question which one of the two methods is better.
Which one can generate bigger more consistent results?
And the only true answer is that it truly depends on you and your own *perception and belief* of the markets, which unfortunately it is influenced with all the "garbage" the Internet has with regards to this subject.
So for once and for all we are going to "demystify" this "ugly" trading myth!
You need to understand and answer something very critical here;
Do you trade price or time?
Trading price and trading time are two very different subjects, and most people put both of these together when in reality if you trade price, then what difference does it make if it is "structured" into a 5m chart or a daily chart? Price is price right? End of story!
Time is nothing but a human element built into the financial markets which allows you to "dissect and analyze" price in segments.
So in reality, trading a "particular timeframe" is a complete lie and misconception of trading, because "pure price action trading" is to trade P-R-I-C-E, irrelevant of the timeframe it appears on!
Now, let's look at it from a different angle to simplify this even more...
Let's say for example that we have two very different cars.
On one side we have a nice Ferrari 430 Scuderia.
On the other side we have a Fiat Panda.
Now let me ask you one simple question:
What's the difference between them both?
- The both have 4 wheels.
- They both have gears and a steering wheel.
- They both need good driving experience to drive them safely.
So, what's the difference between them both?!
Do you need more experience to drive one car over the other? Hmm not really.
Apart from looks and design, the only major difference is that they have radically different extreme engine sizes. They both have engines yes, but one is much more powerful and bigger than the other.
Yet the irony here is that both these cars will take you from A to B comfortably, PROVIDING you know HOW to drive properly.
You see, the markets are exactly the same!
Timeframes are mere "vehicles" that allow you to go from A to B at different "speeds".
As long as you know HOW to trade you will get from A to B no problem.
So the big question really is how FAST do you want to go from A to B in your trading?
I trade the 1m 5m 15m charts comfortably and stress free.
I trade no more than 4 hours per day.
And I also trade fewer markets than most of my peers do, because they also "believe" the fallacy of higher timeframes are better and more profitable.
Yet at the end of the month, they have average 10% - 15% returns and I get on average anywhere from 40% - 50%, without compounding!
So there you have it! Contrary to popular beliefs, the longer the timeframe, the longer it will take you to find out if your trade was profitable, or not.
I don't know about you, but I prefer to find out in minutes, if not seconds, if I was wrong because this way I can move on to better trades within that same day and recoup my "incurred expenses" even faster.
And the cool part is that it also allows me to compound my income faster, this means you go from A B even faster than the position traders, who hold trades for "god-knows-how-many-days" just to make 3% - 5%, meanwhile I (and you if you like) do this within one day, and with part-time work.
So if you want to find out how to do this just like we do, how to make consistent returns every month no matter how good or bad the economy is, then I advise you get rid of your Panda, get our completely FREE course and start using the Ferrari it contains.
