Hi all, I'm mostly a fundamental investor - primarily along the value lines of Buffett and w/ quantitative elements of a value guy like Greenblatt. I do get into some other stuff based in longer term narrative around tech/structural change - but at it's core the fundamentals steer what I invest in. I'm wanting to add a bit of position trading to what I do, but am not sure how to approach. My Question: For position and longer term swing traders out there (from weeks to maybe 3-4 month holding periods) - do you pre-filter the universe of stocks you select from based on long term fundamental factors - are are you looking at something else - like involving an event, or technical setup - or ? The underlying question here is: Do you position trade mainly stocks that you think would be good long term buys - or do your position trades target a different type situation? The reason I ask is that I've had some success in the past doing some position trading - but not in any structured or targetted way - mostly big blue chip type positions that were just oscillating without much direction - but I was also limiting myself to stocks that I encountered based on favorable fundamentals that I wouldn't mind owning longer term - usually picking up a dividend along the way. Details: I'm usually only looking to go long (my success w/ shorting is not good currently), and I do not use leverage. I'm trying to understand the thought process of how position traders approach their universe of options - especially with regard to how they find it different from longer term fundamental investing. Any comments appreciated.
The time frame you are using will alter as to the period being looked at. For instance I use 15 minute TF for intraday scalping but go to daily for trades expected to last days or a few weeks. Up to you really.