<hsfpcrwuvgpv@yahoo.com> wrote in message
news:1141646771.564849.104280@j33g2000cwa.googlegroups.com...
>
> When people talk about different styles of trading, like day trading,
> position, swing, trend, etc., are they really talking about someone's
> style of trading, or how efficiently they are trading? Underneath what
> is usually being stated is how "involved" they wish to be with their
> investment. Really though, the only legitimate way of looking at it is
> with respect to efficiency. No matter which "style" you may choose, if
> you want to be a shrewd, successful investor, you must monitor your
> positions at least once per day.
> While there is money to be made in day trading, I do not consider it to
> be efficient. You must monitor your positions constantly all day while
> the market is open. The efficiency of your job, in this case trading,
> can be simply stated mathematically with the formula; profit or wages /
> time worked. So if your profit remains constant, but you could choose
> to work only two hours per day or eight hours per day, which scenario
> would seem more efficient to you? Obviously, the two hour day. I would
> much rather work an hour or two in the morning, and have the rest of
> the day to myself than be glued to my computer screen all day long.
> So that leaves us with multiple day trades. Now since we are concerned
> with efficiency, we want to trade in such a way as to obtain the
> highest possible profit in the least possible time frame. Charts 1 and
> 2 below show typical up trends. Now many would be happy to get in on
> the start of the trend in chart 1 and ride it out to the top (between
> the red lines). But there is a more efficient (ie, more profitable) way
> to trade it. You will note that during this trend there are many
> valleys on the way up. This is normal. But ask yourself, "What profit
> am I making during the time one of those valleys are occurring?"
> ANSWER: None. In some cases negative. Wouldn't it make much more
> since to ride up the "swing" in chart 1, exit and while a valley is
> occurring on one chart (at the blue line), ride the "swing" on chart 2
> during the same time period (between the blue lines)? Now look at the
> difference for the same time period by jumping from one swing to
> another. Instead of having an up and down (or stagnate) period, you
> have two contiguous up periods! This is the effeciency behind swing
> trading. Although you still need to know how and when to enter a swing.
>
> http://www.ushomebasedbusiness.com/home.php/gzsixthsense
>
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