Buy & Hold vs Short term trading battle
تم تحديثه
I use the 1H chart to illustrate the benefits and drawbacks of buy & hold strategy versus short term trading on Silver.
For Buy & Hold, you basically buy at 14.27 (approx) and if hold till current price, you would make a profit of close to 10% (9.8% to be exact )
You ignore the volatility in between.
For short term trading, you leverage on both long and shorts position to maximise your gains.
If you execute with precision, you would make a total profits of 29.3%, double of what you gain for buy & hold strategy.
The challenge is you need to make 5 trades and you need to know your precise entry (more or less) to max out your gains. If you take a back seat and frame a rectangle over the price action, you can see that it is merely in a consolidating phase of ups and downs.
And that temptation to be able to make double or even more profits than buy & hold strategy lure many newbies to come in and try.
Again, there is no right or wrong and whether which strategy suits you better, you have to find out for yourself.
For me personally, I invest mid to long term in most stocks and ETFs and restrict my trading to forex and futures. This itself is taking up a lot of my time and I won't have extra bandwidth to take on more.
Now you see, a same chart can yield very different gains for different traders/investors. Choose one that suits your temperament, time and lifestyle.
For Buy & Hold, you basically buy at 14.27 (approx) and if hold till current price, you would make a profit of close to 10% (9.8% to be exact )
You ignore the volatility in between.
For short term trading, you leverage on both long and shorts position to maximise your gains.
If you execute with precision, you would make a total profits of 29.3%, double of what you gain for buy & hold strategy.
The challenge is you need to make 5 trades and you need to know your precise entry (more or less) to max out your gains. If you take a back seat and frame a rectangle over the price action, you can see that it is merely in a consolidating phase of ups and downs.
And that temptation to be able to make double or even more profits than buy & hold strategy lure many newbies to come in and try.
Again, there is no right or wrong and whether which strategy suits you better, you have to find out for yourself.
For me personally, I invest mid to long term in most stocks and ETFs and restrict my trading to forex and futures. This itself is taking up a lot of my time and I won't have extra bandwidth to take on more.
Now you see, a same chart can yield very different gains for different traders/investors. Choose one that suits your temperament, time and lifestyle.
ملاحظة
Praise the Lord. Hope some of you guys have longed this with us.ملاحظة
the future is as bright as the promises of God - William Careyملاحظة
we are stuck in the 17 to 17.50 range... awaiting breakoutملاحظة
very crucial now. price has reach the 18.00 price level. see this chart. 
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