How do you decide between intraday and medium-term trading? Let's work together to find it out!
As you may be aware, trading techniques can vary depending on the time period in which a trader keeps his holdings.
Intraday trading refers to trading within one day, and medium-term trading refers to positions that remain open from one day to several weeks. Each approach has advantages and downsides.
đThe ratio of risk to profit.
Intraday trading has more risks, but it can also result in higher profits. The hazards in medium-term trading are reduced, but the revenue is likely to be smaller.
đApproach to trading.
Because intraday trading occurs inside one day, the trader can complete numerous deals in a single day and then exit the market. In the event of medium-term trading, you must be patient, waiting for the most appropriate period to close positions at the highest profit.
đVarious analytical techniques.
Technical analysis knowledge is required for intraday trading â a trader must be able to interpret several technical indicators on short-term timeframes and orient oneself on charts. For medium-term trading, it is critical to comprehend the basic analysis concepts, to continually watch what is going on in the world, and to judge how this or that incident influences the market.
đAmount of initial capital.
Medium-term trading necessitates a bigger volume of starting capital than intraday trading, which allows you to trade with relatively small quantities.
It is critical to remember that there is no such thing as a risk-free trade, so always thoroughly consider all of your options and avoid being swayed by emotions. #TradingTips
