Ask Colin

What do you mean by short term trading?

Short term trading applies generally to people who trade futures, because the leverage and need for more margin when a trade goes against them forces them to take a short term view.

It also applies to anyone who day trades equities (buys and sells on the same day).

It extends to those who trade over a short period like a few days to a few weeks. This will include trading options and warrants, which are a real mug's game.

Most of the big money is made trading the big moves that take months to years to complete.

That definitely does not mean you invest and forget for years as you mention in the full version of your question. It is essential that you actively manage your trading portfolio. Investors should do the same.

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