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When most people hear about futures trading, one thing that comes to mind is that day trading is riskier than swing trading (positions held from several days to several weeks). This assumption typically comes about by people who have no idea how futures trading really works. Well, in this short article, I will dispel the myths once and for all and prove that day trading the futures market is less risky and far superior than swing trading<br>
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“Day Trading Or Swing Trading: Which Is MoreProfitable?” By Kevin Stone INTRODUCTION When most people hear about futures trading, one thing that comes to mind is that day trading is riskier than swing trading (positions held from several days to several weeks). This assumption typically comes about by people who have no idea how futures trading really works. Well, in this short article, I will dispel the myths once and for all and prove that day trading the futures market is less risky and far superior than swingtrading WHAT IS DAYTRADING? Day trading is simply a process that involves buying and/or selling of a futures contract with the intention of closing out each position by the end of each trading session. In other words, day trading takes place on a short-term basis with its main aim to making smaller gains in the shortestperiod. In most cases, day trades last from a few minutes to a few hours. For traders to make gains day trading futures, they must employ some unique set of guidelines which must be followed to the letter each and every time, no matter what. This strict discipline is what separates the “greats” from the “not so greats”. The ability to follow a plan designed to fit each trader’s distinct personality truly is the foundation of a successful day tradingbusiness ADVANTAGES OF DAY TRADING VERSUS SWINGTRADING:
Inthissection,wewillconsiderthesuperiorityfactorswhichmakedaytradingfuturesmoreInthissection,wewillconsiderthesuperiorityfactorswhichmakedaytradingfuturesmore • desirable over long-term futures trading. Using these factors, you will be in a position to wisely choose whether or not day trading futures is right for you. These factors of comparisoninclude: • Involves lessrisk • With day trading, you do not subject your investment to overnight risk. Trading within business hours will give you a chance to make small gains but at the same time reduce experiencing large and violent price swings which typically occur when the markets are closed. A day trader sleeps at night peacefully knowing that there is no risk in hisinvestment. • Ability to conduct multipletrades. • Day trading may involve executing multiple trades within a single day. This means that you have the ability to compound your rate of return at a much faster rate, which helps to level the playing field for those of us who might have a smaller tradingaccount. • On the other hand, long-term traders typically hold only one or two positions and are at the mercy of long drawdowns which could take months or even years to recover, (Think the meltdown of 2008). • Ability to easily exit positionsanytime • Day traders have the freedom to enter and exit trades at any given time. Meaning that when you realize that prices are moving against your position, you can freely exit from the trade to avoid taking furtherlosses. • Long-term trading stands at a losing edge when it comes to the freedom of entry and exit in the business. The reason behind this is because you can enter into a long-term futurestrading
businessfreelybutthefreedomtoexitisminimal.Oncethemarketsareclosed,youcannotexitbusinessfreelybutthefreedomtoexitisminimal.Oncethemarketsareclosed,youcannotexit • until it reopens and we have already discussed the danger of holding a positionovernight. • Ability to make compoundprofits. • As a trader, you want to invest in a business that takes the shortest time to give you returns on your investment. Well, day trading is the best business to try out. When day trading futures, you will be in a position to earn money on a daily basis. You can easily use the gains you get from the previous day, week, or month to translate into the ability to buy or sell more contracts, which in turn, will generate greaterprofits. • While trading in the long-term, it’s much more difficult to generate profits on a daily or weekly basis. This is because most swing traders cannot participate in the daily price fluctuations that typically happen throughout the day. These price fluctuations can be a huge nuisance for swing traders but a godsend for the day trader who can change positions at a moment’snotice, • WHO IS ELIGIBLE TO TRADE IN THE FUTURESMARKET? • Futures trading has gained a lot of popularity with the invent of online, discount brokers which now offer ridiculously low commissions, margins and fees. For this reason, all kinds of investors are eligible to trade in the futures. Some of the widely known investors of futures trading include: • Privateinvestors • Institutionalinvestors • Differentmanufacturers • Goods and servicessuppliers • CONCLUSION
DaytradingisaviablebusinesswhichcantransformyourfinancialconditionswithinaveryDaytradingisaviablebusinesswhichcantransformyourfinancialconditionswithinavery short period of time. I highly recommend day trading futures to anyone who wants to increase their income exponentially Kevin Stone is a futures trader with over 10 years’ experience. To receive your free, no- obligation 30 minute coaching session, email at:getpaidtradingfutures@gmail.com. Place free coaching in the subjectline.