The choice of trading cycle is crucial to the trading strategy, and different cycles have their own unique characteristics.
1⃣️Cycle length and trading signals: Shorter cycles will generate more trading signals, while longer cycles will generate relatively fewer trading signals.
2⃣️Cycle length and profit and loss ratio: Shorter cycles usually have lower profit and loss, while longer cycle transactions tend to provide higher profit and loss ratios.
3⃣️Cycle length and trading skills: Short-term trading requires higher trading skills and reaction speed, while long-term trading focuses more on strategy and patience.
4⃣️Cycle length and inclusiveness: Long-term trading is usually more tolerant of market fluctuations, while short-term trading requires more precise entry and exit points.
Choosing a trading cycle that suits you is the key, and there is no absolute distinction between good and bad. Everyone has different personalities, risk tolerance, and trading styles, so you should choose the cycle that suits you best.
If you choose a cycle that is too long, although you may get a larger profit and loss ratio, the trading opportunities will decrease and the opportunity cost will increase. If you choose a cycle that is too short, although the trading signals are frequent, the fast-paced trading may cause emotional and physical fatigue.
Therefore, trading is not simply "the more you work, the more you get", but to make accurate trades at the right time. Being patient and waiting for the best time to make a move is the key to successful trading.