Long term Long term, the operators work from the end of day data and look at their position for several weeks to several months. Usually trend trading. Benefits No need to see the intraday markets. Fewer transactions means lower commission costs. The cost of equipment and data is minimal. Major disadvantages of equity changes in individual positions with large stops. Usually only one or two operations a year to exceptional patience is essential.
Increased capitalization to mount the longer term changes. Frequent losing months. Short Term Work from intraday data and looking to celebrate for one day a week. Usually swing trading. Advantages More opportunities for trades. Less chance of losing months.
Less dependence on one or two operations a year to make money. Disadvantages Transaction costs will be higher. Intraday data is added to costs. Overnight risk becomes a factor. Day Trading skills from intraday data the day trader will have the benefits of small intraday swings. All positions are abandoned in foreclosure. Many opportunities for trade advantages in a day. Much less chance of losing months. There is no risk at night. The reduced margin requirements due to no overnight risk. Disadvantages Transaction costs will be high. Psychologically more difficult due to the frequency of negotiation. The benefits are limited by having to leave at the end of the day. Data costs are high, such as real time data is essential. Tim Wreford runs a website that provides information and resources for traders. Tim also provides the results of which are updated daily on the site.