Trading Timeframes -

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Trading Timeframes

Trading Timeframes

Long Term

Long term traders will work from end of day data and look to hold trades for a few weeks up to many months. Usually trend trading.

Advantages

No need to watch the markets intraday.

Fewer transactions means lower commission costs.

Cost of equipment and data is minimal.

Disadvantages

Large equity swings on single positions with large stops.

Usually only 1 or 2 exceptional trades a year so patience is essential.

Bigger capitalization required to ride longer term swings.

Frequent losing months.

Short Term

Working from intraday data and looking to hold for a day up to a week. Usually swing trading.

Advantages

More opportunities for trades.

Less chance of losing months.

Less reliance on one or two trades a year to make money.

Disadvantages

Transaction costs will be higher.

Intraday data adds to costs.

Overnight risk becomes a factor.

Day Trading

Working from intraday data the day trader will attempt to take small profits from intraday swings. All positions will be exited at the market close.

Advantages

Many trading opportunities in a day.

Much lower chance of losing months.

No overnight risk.

Reduced margin requirements due to no overnight risk.

Disadvantages

Transaction costs will be high.

Psychologically more difficult due to frequency of trading.

Profits are limited by needing to exit at the end of the day.

Data costs are high as real time data is essential.

Tim Wreford runs Online Futures Trading, a website that provides information and resources for traders. Tim also provides a free day trading system, the results of which are updated daily on the site.

In The News:

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://africa.reuters.com/world/news/usnTRE4955DR.htmlcid=1254889944ei=DN7ySLrbF43W6gOC2smwAwusg=AFQjCNG1AvNNOzjOkC2vIGZ00mnxZXhKhAimg src=http://news.google.com/news?imgefp=nqblEyjhriUJimgurl=africa.reuters.com/newsimages/2008/10/06/tn_2008-10-06T162224Z_01_BTRE49519HH00_RTROPTP_2_OUKWD-UK-MARKETS-GLOBAL.jpg width=80 height=57 alt= border=1brfont size=-2Reuters South Africa/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.bloomberg.com/apps/news%3Fpid%3D20601085%26sid%3DaIZ5HbXYhzhw%26refer%3Deuropecid=1254889944ei=DN7ySLrbF43W6gOC2smwAwusg=AFQjCNGUdvRmlIaTrcYXnnkSirAxWqTRjwEuro Rises Most in 3 Weeks as European Leaders Guarantee Banks/abrfont size=-1font color=#6f6f6fBloombergnbsp;-/font nobr1 hour ago/nobr/fontbrfont size=-1The bcurrency/b advanced versus the greenback, snapping two days of losses, as leaders of the 15 countries using the euro meeting in Paris endorsed bailing out b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://online.wsj.com/article/SB122384902148626917.html%3Fmod%3Dgooglenews_wsjcid=1254889944ei=DN7ySLrbF43W6gOC2smwAwusg=AFQjCNHbRe2fU_OvhVzmmdFpXS-90wCfvQAustralian bCurrency#39;s/b Fall Appears Set To Continue/a font size=-1 color=#6f6f6fnobrWall Street Journal/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://economictimes.indiatimes.com/Global_Markets/Asian_currencies_mostly_down_against_dollar/articleshow/3586590.cmscid=1254889944ei=DN7ySLrbF43W6gOC2smwAwusg=AFQjCNF9ZzQkX8Yi51POXlRZ0dIVueHY8AAsian currencies mostly down against dollar/a font size=-1 color=#6f6f6fnobrEconomic Times/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.guardian.co.uk/business/feedarticle/7850934cid=1254889944ei=DN7ySLrbF43W6gOC2smwAwusg=AFQjCNG4_9_hAMSv-6k5arwWJ9iXI8P7JAGLOBAL MARKETS-Selling frenzy persists as confidence crumbles/a font size=-1 color=#6f6f6fnobrguardian.co.uk/nobr/font/fontbrfont size=-1 class=pa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.bloomberg.com/apps/news%3Fpid%3D20601087%26sid%3DaGwx3vrclC58%26refer%3Dhomecid=1254889944ei=DN7ySLrbF43W6gOC2smwAwusg=AFQjCNGwvgFuB-SlCTrGlD1gDaG_nR4KLwnobrBloomberg/nobr/anbsp;- a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.bloomberg.com/apps/news%3Fpid%3D20601087%26sid%3DaowL0pZeGX4w%26refer%3Dhomecid=1254889944ei=DN7ySLrbF43W6gOC2smwAwusg=AFQjCNHUIXN89kNevcSW3LuBtCHFYbSmTQnobrBloomberg/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1254889944hl=ennobrall 646 news articles/nobr/a/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.reuters.com/article/innovationNews/idUSTRE49A36O20081013cid=1257045441ei=DN7ySLrbF43W6gOC2smwAwusg=AFQjCNF5oEPZv_XlZrsSYHiqGepP-XFQywimg src=http://news.google.com/news?imgefp=cIzxpmiyGUsJimgurl=www.reuters.com/resources/r/%3Fm%3D02%26d%3D20081012%26t%3D2%26i%3D6349731%26w%3D192%26r%3D2008-10-12T160434Z_01_BTRE49B18NU00_RTROPTP_0_FINANCIAL-EUROPE width=80 height=53 alt= border=1brfont size=-2Reuters/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.guardian.co.uk/business/feedarticle/7859415cid=1257045441ei=DN7ySLrbF43W6gOC2smwAwusg=AFQjCNHOF2BqhUVuXHRHZ6TcOi84ki-vNwFX OUTLOOK-Euro may bounce vs dollar after European summit/abrfont size=-1font color=#6f6f6fguardian.co.uk,nbsp;UKnbsp;-/font nobr8 hours ago/nobr/fontbrfont size=-1By Vivianne Rodrigues WASHINGTON, Oct 12 (Reuters) - The euro may bounce against the US dollar once btrading/b resumes this week after European leaders agreed b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://technology.timesonline.co.uk/tol/news/world/article4919939.ececid=1257045441ei=DN7ySLrbF43W6gOC2smwAwusg=AFQjCNFwdmkX7zK8pap0tLauWyaYlfrycgDarling calls on G7 to act amid market panic/a font size=-1 color=#6f6f6fnobrTimes Online/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://business.theage.com.au/business/finance-leaders-unite-in-the-search-for-a-global-solution-20081012-4z6v.htmlcid=1257045441ei=DN7ySLrbF43W6gOC2smwAwusg=AFQjCNG-SvhLICNFBu4T7qugOduFu7j3SwFinance leaders unite in the search for a global solution/a font size=-1 color=#6f6f6fnobrThe Age/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.canada.com/windsorstar/news/story.html%3Fid%3Dd4e24c6e-27c3-4a5f-8f9d-40a4d97c2a0bcid=1257045441ei=DN7ySLrbF43W6gOC2smwAwusg=AFQjCNGseV__hKQdPBaoLpJqdUJ7mWpM8QFreefalling stocks pile pressure on G7/a font size=-1 color=#6f6f6fnobrCanada.com/nobr/font/fontbrfont size=-1 class=pa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.fxstreet.com/news/forex-news/article.aspx%3FStoryId%3D95716a5f-cdcc-410a-868c-e30d919bcd43cid=1257045441ei=DN7ySLrbF43W6gOC2smwAwusg=AFQjCNG6qP5hftOANyS2K3HIZx0_ZEECognobrFXstreet.com The Foreign Exchange Market/nobr/anbsp;- a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.crikey.com.au/Business/20081007-Global-market-wrap-Everywhere-you-look-carnage.htmlcid=1257045441ei=DN7ySLrbF43W6gOC2smwAwusg=AFQjCNHi6VZ7vBAz01ZevBgM48Wb4EOpnAnobrCrikey (subscription)/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1257045441hl=ennobrall 153 news articles/nobr/a/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://online.wsj.com/article/SB122358053217020031.html%3Fmod%3Dgooglenews_wsjcid=1256461620ei=DN7ySLrbF43W6gOC2smwAwusg=AFQjCNG18hTb0z5sd-qQwoh8aj9R7SyItAStampede for Yen Saps Asian bCurrency Trading/b/abrfont size=-1font color=#6f6f6fWall Street Journalnbsp;-/font nobrOct 9, 2008/nobr/fontbrfont size=-1Meanwhile, hedging against foreign-exchange risk has become more difficult as options related to bcurrency trading/b have become more expensive, Mr. Liu said. b.../b/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://english.donga.com/srv/service.php3%3Fbicode%3D040000%26biid%3D2008101356748cid=0ei=DN7ySLrbF43W6gOC2smwAwusg=AFQjCNG5TEP8iAjGX0BW_rjfz-sEydkZGgFX bTrading/b to Get Tighter Scrutiny/abrfont size=-1font color=#6f6f6f동아일보,nbsp;South Koreanbsp;-/font nobr6 hours ago/nobr/fontbrfont size=-111, saying it hopes to restore order in the financial market suffering from large fluctuations of foreign bcurrency/b rates. The plan has six targets: the b.../b/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://blogs.wsj.com/marketbeat/2008/10/07/icelands-frozen-banking-sector/cid=1256870677ei=DN7ySLrbF43W6gOC2smwAwusg=AFQjCNFdY998BO8STKX-oqz4KvoSJP_McAimg src=http://news.google.com/news?imgefp=zwPNP2Hp2HcJimgurl=s.wsj.net/media/krona_auto_lg_20081007102343.jpg width=80 height=38 alt= border=1brfont size=-2Wall Street Journal Blogs/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.bloomberg.com/apps/news%3Fpid%3D20601085%26sid%3Daiz5QIq94nrw%26refer%3Deuropecid=1256870677ei=DN7ySLrbF43W6gOC2smwAwusg=AFQjCNGsel1NJacPNyk5sgoCNyvBJlL5AwIceland#39;s Krona bCurrency Trading/b Halts as Kaupthing Taken Over/abrfont size=-1font color=#6f6f6fBloombergnbsp;-/font nobrOct 9, 2008/nobr/fontbrfont size=-1b.../b a bcurrency/b analyst in Frankfurt at Commerzbank AG, Germany#39;s second-largest lender. The krona plummeted to 350 per euro this week in btrading/b between b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://blogs.wsj.com/marketbeat/2008/10/08/shortest-currency-peg-ever/cid=1256870677ei=DN7ySLrbF43W6gOC2smwAwusg=AFQjCNHYGGTrzWdtdz306qThYKGpHR87pQShortest. bCurrency/b Peg. Ever./a font size=-1 color=#6f6f6fnobrWall Street Journal Blogs/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://blogs.wsj.com/marketbeat/2008/10/07/icelands-frozen-banking-sector/cid=1256870677ei=DN7ySLrbF43W6gOC2smwAwusg=AFQjCNFdY998BO8STKX-oqz4KvoSJP_McAIceland’s Frozen Banking Sector/a font size=-1 color=#6f6f6fnobrWall Street Journal Blogs/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.bloomberg.com/apps/news%3Fpid%3D20601085%26sid%3DabjzC1zbw8VI%26refer%3Deuropecid=1256870677ei=DN7ySLrbF43W6gOC2smwAwusg=AFQjCNEk7XFdoQAIOrd-ziMUWpYNMXLxMQIceland#39;s Krona Quoted 95 Percent Below Peg; Regulator Steps in/a font size=-1 color=#6f6f6fnobrBloomberg/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1256870677hl=ennobrall 12 news articles/nobr/a/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://english.chosun.com/w21data/html/news/200810/200810130010.htmlcid=0ei=DN7ySLrbF43W6gOC2smwAwusg=AFQjCNHQ1pvapjVK_OAPJOPb0nnBRLrnzQCustoms to Combat Illegal Forex bTrading/b/abrfont size=-1font color=#6f6f6f조선일보(영문판),nbsp;South Koreanbsp;-/font nobr4 hours ago/nobr/fontbrfont size=-1KCS will examine all potential violations of the Foreign Exchange bTrading/b Act, paying particularly close scrutiny to high-volume foreign bcurrency/b purchases, b.../b/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://online.wsj.com/article/SB122386497510727785.html%3Fmod%3Dgooglenews_wsjcid=1257115025ei=DN7ySLrbF43W6gOC2smwAwusg=AFQjCNF98qSxvIUcaUDGlpczzHUpruKQmgBanks, Resource Stocks Lead Rebound/abrfont size=-1font color=#6f6f6fWall Street Journalnbsp;-/font nobr2 hours ago/nobr/fontbrfont size=-1In Asian bcurrency trading/b, the Australia dollar bought $0.6737 recently, compared with $0.653 Friday. Against the Japanese bcurrency/b, the greenback rose to b.../b/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://news.ninemsn.com.au/article.aspx%3Fid%3D644239cid=1254599372ei=DN7ySLrbF43W6gOC2smwAwusg=AFQjCNGuijGv0kERXMuPk7ucowgBAdtPwgimg src=http://news.google.com/news?imgefp=P0fV1CXkQusJimgurl=news.ninemsn.com.au/img/news_feeds/09_Dollar_400x300.jpg width=80 height=60 alt= border=1brfont size=-2Ninemsn/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://news.theage.com.au/business/australian-dollar-firmer-at-noon-20081013-4z9v.htmlcid=1254599372ei=DN7ySLrbF43W6gOC2smwAwusg=AFQjCNFiz4b87JWIEoTCWF4oS59vstb6gAAustralian dollar firmer at noon/abrfont size=-1font color=#6f6f6fThe Age,nbsp;Australianbsp;-/font nobr3 hours ago/nobr/fontbrfont size=-1At 1200 AEDT, the Australian dollar was btrading/b at $US0.6732/36, up from Friday#39;s close of $US0.6591/99. The bcurrency/b shed more than half a US cent 20 b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://business.smh.com.au/business/dollar-bounces-back-20081009-4wyb.htmlcid=1254599372ei=DN7ySLrbF43W6gOC2smwAwusg=AFQjCNEwiazeTjoTOEvoTbhRNtZxXKR8YQDollar bounces back/a font size=-1 color=#6f6f6fnobrSydney Morning Herald/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.theaustralian.news.com.au/story/0,24897,24486843-643,00.htmlcid=1254599372ei=DN7ySLrbF43W6gOC2smwAwusg=AFQjCNHowcLhgLGzewQes8AGmK3Lme-IQwRudd savings plan lifts dollar/a font size=-1 color=#6f6f6fnobrNEWS.com.au/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://news.sbs.com.au/worldnewsaustralia/the_fall_of_the_aussie_dollar_explained_559788cid=1254599372ei=DN7ySLrbF43W6gOC2smwAwusg=AFQjCNHHc_vsTMJ8gTt9rR_jPonqBFfL9QThe fall of the Aussie dollar explained/a font size=-1 color=#6f6f6fnobrSpecial Broadcasting Service/nobr/font/fontbrfont size=-1 class=pa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.theaustralian.news.com.au/story/0,25197,24476003-36418,00.htmlcid=1254599372ei=DN7ySLrbF43W6gOC2smwAwusg=AFQjCNEG3PnUlVsOw3u5Yx_1pX-YP8iDoQnobrThe Australian/nobr/anbsp;- a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://news.theage.com.au/business/a-opens-lower-after-weak-wall-st-finish-20081010-4xrf.htmlcid=1254599372ei=DN7ySLrbF43W6gOC2smwAwusg=AFQjCNHoqtA6ep--iwPM53vpO-Vpy6di5gnobrThe Age/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1254599372hl=ennobrall 393 news articles/nobr/a/font/div/font/td/tr/table

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