One of the reasons I like Position Trading

Discussion in 'Strategy Building' started by Buy1Sell2, Apr 18, 2006.

What kind opf trader are you?

  1. I am a position trader

    132 vote(s)
    27.7%
  2. I am a swing trader(overnight)

    137 vote(s)
    28.8%
  3. I am a day trader

    207 vote(s)
    43.5%
  1. Buy1Sell2

    Buy1Sell2

    The day trader has more opportunities, but the vast majority of daytraders, especially newbies, will miss the vast majority of these.
     
    #211     Dec 29, 2006
  2. Buy1Sell2

    Buy1Sell2

    I believe that the bulk of daytraders become addicted to what they are doing, just as a gambler would. Even though the activity is self destructive, they continue to do it.
     
    #212     Dec 29, 2006
  3. Position trading can be just as bad. Losses are bigger, and its even more frustrating when your holding for a month, and your trade turns out to be a loser or a break-even.

    cm69
     
    #213     Dec 30, 2006
  4. I think applying swing trading methods for intraday time frames doesn't work very well, it's difficult to do both simultaneously in any case.
     
    #214     Dec 30, 2006
  5. If there were to be a logical way of teaching trading, say it were to be taught at schools, how would they teach it logically?

    Would they start with day trading, position or swing?

    Which trend do you need to be able to spot first?

    Or does it not matter?
     
    #215     Dec 30, 2006
  6. Very well said indeed.
     
    #216     Dec 30, 2006
  7. Pitty! :confused:
     
    #217     Dec 30, 2006
  8. "I would be surprised if more than 2 or 3 people on thoe whole of this site have been long oil for the last $40, or long gold since $350, long Japan from 10,000 etc. This idea that position trading is easy is just folly. "

    i, for one, was long gold as of 1999

    i had no idea what daytrading was. i simply saw everybody yammering about the stock market, and gold totally suited my contrarian investment style

    i plunked down a lot (for me at the time) of money and put it in MIDSX. i then dollar cost averaged additional money into it for the next two years

    i cashed out 2/3 before gold peaked, but after almost a quadruple, i took some damn profit

    my point is that you do not have to be a genius, but it often pays to be a contrarian, especially if you have some patience and are willing to invest in something that NOBODY else likes

    that's not really trend following. that's getting in early and then letting a trend develop.

    ANY investor could have done this. i doubt many did, because everybody was caught up in the nasdaq fever

    if this sounds boastful, fine... i've made many mistakes, too.

    :)
     
    #218     Dec 30, 2006
  9. Buy1Sell2

    Buy1Sell2

    There is another item which I like about Position Trading. Stops are not run the way they are during the day. Stops are run during the day because professionals know that stops are placed very close or just beyond "perceived" support and resistance levels. I know this to be true because I have been experimenting with a breakdown/breakout strategy during the day in ES and FX Futures and the whipsaws are numerous. This strategy was profitable since I increased each time (no Martingale), but that system works much better on daily,weekly and monthly charts.:)
     
    #219     Dec 31, 2006
  10. The same principles that apply to the micro apply to the macro.

    A good position trade starts with the micro, you have more time for the market to 'confirm' it's true direction with position trading.

    I get the idea here that most people who have had thier fingers burnt position trading have deserved it.

    Position trading can lead you into a false sense of security, it can give a trader the impression that they can just 'enter' bloody anywhere.

    This is far from the truth.
     
    #220     Dec 31, 2006