Many people indicate that they have trouble holding positions overnight emotionally. However, the truth is that successful position traders are not heavily margined , but day traders are. Day trading is much more emotionally draining than position trading.
I have a question about charts and execution. I'm looking at DISH for BOTH daily and weekly charts. On the daily, it looks like a good buy, with a bottom at 31.10, but on the weekly chart, it looks like its going to reverse any day now by looking at the MACD crossover. My holding period is about 1-2 weeks. Should I follow the bigger trend, or buy into value on the daily? What would a position trader do for this stock?
Thes are not the typical indicators that I use but from what I can see it is a long hold if you are already in and have profits. The trailing stop on daily is below 30.13 ( As near as I could tell from the chart) --Not just one tick below the reaction low, but you need to do a review of this stock's past history to determine how far it normally breaks the reaction low for it to be a legitimate reversal. In summary, if you are in and have profits, then a sell stop is placed outside the reaction low. You should not have any more than 10% of your liquid net worth invested in this stock. This means that if using 2 to 1 margin, then it would be 5%.
I have traded most instruments and most styles... The style which I feel gives me most flexibility in my life is position trading... The downside to position trading is a lower opportunity factor, which means that I have to rely on alternative non-trading income streams during dry periods... But the beauty of position trading is that it is virtually stress free and there is no minute-by-minute rush to make decisions... Perhaps scalping is more profitable these days... but at least I am not an emotional wreck!