One of the reasons I like Position Trading

What kind opf trader are you?

  • I am a position trader

    Votes: 132 27.7%

  • I am a swing trader(overnight)

    Votes: 137 28.8%

  • I am a day trader

    Votes: 207 43.5%
  • Total voters
    476
Hell, just take a look at the Trader Monthly list of traders. A few energy pit bandits (and I mean bandits, masks and six shooters) but the resounding majority are position traders.
 
I am primarily a swing trader, whose occasional trades convert into winning longer term position trades...

I also dabble with daytrading now and again, but I am not as young as I used to be, and I don't have the energy for doing that kind of thing intensively...
 
no no you still have it.. i mean really its not that intense.. its just that its really not worth the time or the effort to do it that way anymore.

Quote from candletrader:

I am primarily a swing trader, whose occasional trades convert into winning longer term position trades...

I also dabble with daytrading now and again, but I am not as young as I used to be, and I don't have the energy for doing that kind of thing intensively...
More...
 
Quote from RedManPlus:



Let's say that using quantitative analysis...
You determine that a $25.00 stock is $0.50 "undervalued".

So you buy 2000 shares at $25.00

You can wait 2-3 weeks for the stock to revert to "historical norms"...
And make, say, $0.40 in 12 trading days = $800

Or you might get the chance to flip the stock for $0.08 in 30 minutes = $160

But in the 2-3 hypothetical weeks it takes the stock to "revert to norm"...
You can probably do that flip 5-10 times.

So it's actually not very clear... what is the optimal time frame to exploit quant analysis.
Your expected return is about the same no matter what time frame you use... with 2 caveats:

(1) Your psychological makeup should dictate scalping versus position trading.

(2) Low transaction costs enhance scalping... high transaction costs make position trading mandatory.
With zero transaction costs... scalping is far more profitable.

Bottom line... a good trader should employ an optimal mix of scalping/position trading.

rm+

:cool: :cool: :cool:
More...

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Buy sell 2;

Good points about keeping comission costs reasonably in line;
& some markets just seem to fit well with position trading,
like long oil & gas stocks sometimes.:cool: Probably another reason CME,BOT,OXPS ,TRAD ,LEH sector is uptrending so well

The times the 50 day ma trend was nicely down in oil gas stocks, didnt like to keep shorts over night, even though it could have worked.

Other markets, @ least the last 12 months worked nicely also flat @ end of day;
shorted some oil/gas stocks, when 50 dma proved it,
& hourly charts with long some /short some on ES,YM.
 
Quote from Buy1Sell2:

Less commissions--My brokerage house doesn't get as rich off of me. I get more profit per commission.
More...

but what is the opportunity cost of missing out on short term trading the swings ?
 
Hi Rhymes. Admire your conviction on setting out onto a path less traveled. I am wondering why you've chosen such. It is kinda strange to be in a prop futures shop where 99% of traders scalp and you decide not to be "one with" the shop. What event got you to this thinking? THanks
 
most of the guys are struggling with scalping, I see the emotional damage being inflicted, I'm convinced that the shorter the time frame, the more random and unpredictable the price action. Actually, a lot of the office is headed in the longer-term direction. We have superior news gathering and research skills, I believe that gives an edge.
 
Emotional damage ...interesting. Ist time someone mentioned that in the context of short term scalping...I am waaaayyy past that...LOL
 
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