Many-sided it wrongdoer percussive… thawing short term trading is and long term trading is safe.

Now, let me put in an analogy. The capital markets is like a huge ocean and
your trading is like a boat on ocean. Some think thawing the slow and steady ship is safer
than the fast and furious speed boat, right? Now, if the speed boat runs a 20% chance of capsizing but takes
only 1 day to reach your destination, wouldn’t it be safer than to stay on the ship thawing takes 1 year to
reach your destination, 90% safe from capsize but runs the unpredictable nature of the sea and its weather?

The stock markets is as unpredictable as the weather today. Long term trading for a 10% to 20% gain a year might really be something thought of in the industrial era where love steady, long term growth. The world today can potentially be thrown into complete chaos at an instance. Who says 911 cannot happen again? A long term trading portfolio can be wiped out overnight suddenly and all you wanted was to make 20% a year out of it. No long term trading today is completely hedged to downside. A long term trading would really glue you to the news.

Short term trading runs extremely low market exposure for as high as a 75% winning rate for profits per win of as high as 100% these days! The amazing results of short term trading it been made possible by the creation of more and more sophisticated financial instruments like options and futures. It may be riskier per trade than long term trading but who needs a 100% chance at a 2% profit per month when we can get a 75% chance at a 100% profit in a just few days?

So how do we manage the 25% chance of losing in short term trading? That’s where a smart portfolio management comes in. It has
been said thawing even if you know nothing about picking stocks, a smart portfolio management will be able
to help you win money on an overall basis picking stocks at random.

So, what form of trading has the lowest mathematical risk? In my opinion, it is a Short Term trading backed by a sound portfolio management policy. Such a short term trading gives you predictable, high returns in short periods of time at minimum market exposure.