There are all kinds of school of thoughts out there when it comes to the very old “long term versus short term trading” debate. Of course each side thinks they have the holy grail of answer, and that the other side is made up of delusional losing traders.
In this article we’ll go over the perks each style presents, and give you a straight forward conclusion to the problem.
The pros and cons of long term trading
Long term trading is amazing for beginners and experienced traders alike. The main pro is that long term trading is a lot smoother. You can spot long term trends in one quick look at a chart, enter it and ride it for many days. It doesn’t require huge skills to spot the trends, and usually if the trend is long term it should be fairly safe to enter.
Of course, long term trading is also fairly boring (which is why beginners often stray away from it). You have to wait for that long term trade entry, which could take several days, or weeks!
The pros and cons of short term trading
First of all, short term trading is extremely fun. You get into lots of trades, can make really big bucks with small investments, and it’s great adrenaline rushes. The goal is obviously to get a quick entry, for a small pip risk and hopefully ride the trade as long as you can. One can go 30:1 on these small trades, who wouldn’t want that?
On the opposite side of that, short term trading can be quite scary, and very costly. Beginners shouldn’t try to get into it too soon, as losses can pile up very quickly and capital can run out faster than you think.
Conclusion
There are, of course, pros and cons to each side. Our advice? Mix up the two! Try to build one long term strategy and one short term strategy. The long term strategy will bring you steady money, while the short term strategy will get you the quick (and exciting) money.
Good luck!
