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One of the surest roads to success in trading is sticking to a time frame that suits your personality. Time frames can be summarized best between day trading, swing trading and position trading. Let's take a look at each styles overview in order to help you decide which is right for you. Day trading or intraday trading are quick trades that often last anywhere from minutes to hours and take place within the same trading day. Day trading is also known as scalping and trades are very rapid, usually small in size and many trades are taken each day.

The pros of day trading or scalping include smaller risk per trade through smaller stops losses and take profits.

You can make money quicker although it takes deep focus in order to day trade.

There is always risk in trading and while there are upsides to day trading there are also down sides. Cons of intraday trading include traders due to frequent trading pay a high amount of fees through spreads or broker commissions.

Also small mistakes can turn into large losses if a position gets away from a trader and their account can loss a lot of money in a very short amount of time. Swing trades can last from anywhere from one day to several days or even weeks. Typically swing traders try to catch price retraces or trend reversals using indicators or price action to help tell the tale of the tape. Using swing highs and lows from recent price action traders use these points of reference for placing their entries and exits. One of the most loved time frames there are too many advantages to swing trading to talk about right now but among them are the ease of trade involved as you are trading higher time frames which result in less time needed to watch the market as needed when day trading. Among the few disadvantages of the swing time frame is that traders often enough become emotional tied to their position which causes them to hold onto losing positions longer than you should. Otherwise known as the buy and hold method, position trading is known as a trend trading style where traders build themselves into large positions over days, weeks and even months trying to profit when the market is trending. Often traders are able to get themselves into a snowball situation when the markets is running with them. Position trading pros include it is the easiest method to trade and profit from as will as easiest time frame to be able to fit into an active lifestyle. Preparation can be done at your leisure and traders only require little of their time to actually place any new trades or adjust any orders. Position traders sometimes do hold onto losing positions too long causing weeks of gains to disappear quickly. Nothing is worse for a trader mentally than to turn a big winner into a large loser and this does sometimes happen to trend position traders. Once you find out what time frame is best for you it will be easier for you to settle in and get to know that time frame and then you will be able to create a trading plan based around that.

The more experience you have getting to know a market the better you will be able to trade it. Use how to trade forex successfully. categories: currency trading,forex,investing,personal finance,finance

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