How Often to Trade and How Long to Hold

This article elaborates on the one dated August 7, 2006 entitled “The Ideal Trading System”.

Today’s topic is the “trading frequency” feature. This is about how often you want to enter orders with your broker plus hold long you want to hold a position. Some examples of different frequencies and hold periods are:

-Scalping (trading throughout the day, holding for a few seconds to a few minutes).
-Microtrend daytrading (entering once or twice a day and holding for part of the day).
-Swing trading (entering 2 to 4 times a month and holding a trade for a few days up to a few weeks).
-Position trading (entering a trade every 1 to 3 months and holding a trade for a few weeks to a few months).
-Long term investing (entering a trade 1 or 2 times a year and holding a trade for a few months to a few years).

Which of these do you prefer? You might have to try one or all of them to find out.

Scalping and microtrend daytrading can be leisurely as well as stressful. To get it to be leisurely, you’ll have to learn how to program a computer to do it for you. However, if you enjoy “stress”, then you’ll enjoy a scalping style of daytrading live and in person! On the other hand, I am working on creating a scalping daytrading system that involves a total of less than 10 minutes per day in front of a computer 4 to 6 times throughout the day!

At the other end of the spectrum, long term investing is suitable only if you can hold your breath for many months. Can you?

Take a look at the trading frequency of my commercial website as an example of a hybrid swing/position trading system. You only have to hold your breath for a few weeks to a month.

We'll chat again soon ...

Copyright 2006 Raymond T. Lee. All rights reserved.
Leisurely e-Mini Futures Trading
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