Diagram P1. SHORT Term Stock Analysis. Charting for Daily, each bar is a Day. A trade cycle (holding period ranges from 1-20 days).	Diagram P2. LONG Term Stock Analysis. Charting for Weekly, each bar is a Week. A trade cycle (holding period ranges from 3-12 weeks).

WHAT IS SHORT VS LONG TERM TRADING?

Long Term Page   Short Term Page Risk Levels - BUY Trades (Only Long Entry) Risk Levels - SHORT Trades (Shorting Allowed) BUY SELL HIGH LOW BUY BUY LOW Avoid SELL BUY HIGH HIGH SELL SELL Avoid LOW         BUY BEARISH HIGH HIGH BUY BULLISH LOW Avoid SELL BEARISH Avoid LOW SELL BULLISH Avoid HIGH         BULLISH BULLISH HIGH Avoid BULLISH BUY LOW Avoid BULLISH SELL Avoid Avoid BULLISH BEARISH Avoid Avoid         BEARISH BEARISH Avoid Avoid BEARISH BUY HIGH Avoid BEARISH SELL Avoid LOW BEARISH SELL Avoid LOW

Diagram P4. Short and Long Term Risk Levels  Combination. Associated with Starting a New Trade Position.

MANAGING YOUR TRADING RISK - UNDERSTANDING THE SHORT AND LONG TERM SIGNALS COMBINATION
 

1. Different traders have different levels of risk tolerance. High Risk = High Return?
   Diagram P4 above helps you determine your risk appetite and tolerance.
    

2. The Buy/Sell signals can be generated for a stock either in the Short Term and/or Long Term pages.
    

3. For example, a BUY signal is generated in the Long Term page. At the same time a SELL signal is generated in the Short Term page. So, what does this means?
   (a) Short Term wise, the stock is going to trend downwards, hence the risk is HIGH.
   (b) Wait for a BUY signal to appear on the Short Term page to obtain a lower entry price, hence reducing your risk.
    

4. In another case, a BUY signal is generated in the Long Term page. At the same time a BUY signal is generated in the Short Term page. So, what does this means?
   (a) Short Term wise, the stock is going to trend upwards, hence the risk is LOW.

  » PROCEED TO  MEMBERS'  AREA «