Long Term Secrets To Short-Term Trading

Figure 3.8 A trade with a $1,000 target. 

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Figure 3.9 A trade that follows the basic rule: $100 profit per trade. 
the argument for me. It is sitting tight, not trading in and out that will make for profits. 
I hold to the close, at least, for an exit point. Until someone can do the impossible, call all short-term 
fluctuations, there will be no better strategy for a short-term trader, as you will capture the large-range days 
where serious money is to be made. The only difference in the preceding results was how long the trade was 
held: the shorter the holding period, the less opportunity for profits. Never forget that rule. 
There is even more money to be made holding over, past the close, but that should be true if what I 
said earlier is valid, that it takes time for profits to accrue. As we discuss individual markets, I will give you 
more specific rules of how to further capitalize on this phenomenon of profitable trading. 
As final proof for my thesis, Figure 3. 10 shows the same system we just looked at, buying on 
Mondays when the market opens below Friday's close. But this time, we are going to hold the position in the 
first example until the next close; that is, the first close after our entry day or until we are stopped out, 
whichever comes first. The product of this strategy nets $68,312, making an additional $30,000 and 
increasing our net profit per trade by $7 1. 
Finally, look at Figure 3.11, which depicts holding for the close 6 days after entry or being stopped 
out. Following this strategy proves my point and should cure you of the notion that big easy money can be 
made catching small swings. We now make $71,600, almost doubling the exit on close results boosting our 
average trade up to a now respectable $251. Remember, the only difference in these results is how long we 
stayed in the trade, all the other rules are the same. 

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