When you first enter a trade you must determine which time frame you want to use. Trading your time frame is very important. You cannot enter a trade based on one time frame and exit it based on another time frame.
Many people will buy long term stocks. These are companies they are bullish on and confident about their ability to head up. But when the stocks start to take a turn for the worst they will exit to save money.
That simply doesn’t work. If you enter a trade for a long term play it should remain a long term play. Likewise if you enter a trade with a short term perspective you should trade it with that same short term perspective.
Changing your rules and time frames once you enter a trade can have dire consequences. Only by staying consistent in your trading can you have consistent profits.
So, what is your time frame in the markets? This is a question all new traders should ask themselves before entering the market. The time frame you pick has to fit your personality as well as your ability.
Do you have the time to devote 10 to 20 minutes a day to the stock market? If so you might do well as a short term trader. Do you want to spend a couple hours a day trading while the market is open? In that case you may fit better as a day trader.
If you can’t devote a lot of time to the markets a longer term perspective would fit best. It all depends on you. You may even choose to have some long term trades and some short term trades open at the same time.
But once you decide what your time frame is on a given trade you cannot go back and change it later on.
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