In the 2nd Market Club Minute, Adam Hewison talks about a key decision you need to make as a trader – choosing a time frame. Click here to watch his 1-minute video.
One way to facilitate that decision is to list the types of traders and their time frames:
- Buy and Hold Investor – forever
- Active Investor – longer term of a year or more but has a plan to sell eventually
- Position Trader – catch one leg of a trend, hold trades for weeks or months
- Swing Trader – get in for a quick pop and out within days
- Day Trader – doesn’t hold overnight
- Market Maker – constantly offers a bid and ask price
Understanding yourself is essential. Understanding the different risks and rewards of trading in each of these timeframes gives you a framework to find the optimal spot for you. A good place to find out more is the BackTesting Report Baseline – click here to download it directly (no registration required).
(BackTesting Blog is an INO.com affiliate.)