Sunday, January 18, 2009

Timeframes for trading

Often one hears one Technical Analyst being bullish (going long) on Nifty while another being bearish (going short). While this may appear confusing and paradoxical it is possible both will eventually end up making money. The reason being each person trades in his own timeframe. Broadly speaking the following timeframes exist:

1) Long term traders : timeframe of greater than 3 months
2) Momentum traders: timeframe of 1 week to 3 months
3) Day traders: all positions squared off by 330pm
4) Scalpers: They enter and exit markets in a matter of few minutes

The key is to identify your timeframe and trade according to a well tested sytematic plan. Then watch those Nifty points pile up!

No comments: