One of the reasons I like Position Trading

[JimmyJam]

Quote from Buy1Sell2:

I believe that a higher percentage of day traders fail than do position traders. Day traders generally believe that they are able to control losses quickly by having close stop losses, but in reality, day traders in general miss the big moves that help their account survive and indeed, prosper. New traders are attracted to day trading because they feel it is exciting but they won't have to lose much. In the meantime, their accounts are slowly bled to death with whipsaws, commissions etc. --Day trading should only be attempted by experienced traders, not newbies.

I agree with the last statement there B1S2, "Day trading should only be attempted by experienced traders, not newbies", but as far as the rest is concerned, I don't know about that.

Here on ET I've seen an extraordinary diverse number of intra-day traders who have determined one or more components which create a viable edge for them to continuously succeed in the financial markets. Some use volatility, others volume and others still position sizing (just to name a few) to create/enhance their edge.

Best,

Jimmy

 

[cashmoney69]

For all you position traders

..What do you do in the mean time?. Do you have another job incase your trades dont work out?

- nathan

 

[stock_trad3r]

I make most of my licing with position trading. once you have odne it as often as I have it is VERy easy to make money buying and selling stocks. and you make far more with position trading than daytrading as well.

 

[ddunbar]

Quote from rhymeswithorang:

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.

Yeah but...

They're forced to trade that way due to the size of the money under management.

I think beginning, small to medium size traders should start as swing traders and eventually and naturally evolve into position trading. In fact, they should also have at least one instrument that they can day trade with proper money management to keep them "working" while their swing work themselves out.

 

[Buy1Sell2]

Quote from cashmoney69:

For all you position traders

..What do you do in the mean time?. Do you have another job incase your trades dont work out?

- nathan

The rest of the time can be used to study the charts more in depth and look at other markets to identify opportunities. Someone once told me that day trading had a lot more oportunities to profit, which is probably true when reviewing one or two markets. However, you have to pay attention at all times to exploit every opportunity. Position traders end up finding the better extended opportunities and perhaps more of them because they can watch more markets. Day trade opps are easier to miss. The significant money in the market for the retail trader is in position trading. Certainly, there are folks who clean up day trading, but they are few and far between in my view and are not newbies. Newbies need to position trade which is exactly the opposite of what they think they should do. --Also by the way, position trading gives you time to do other things and be more well rounded.

 

[OddTrader]

Quote from cashmoney69:

For all you position traders

..What do you do in the mean time?

Just like you, surfing on ET. Don't you?

 

[Buy1Sell2]

Having been a position trader all thes years and then recently trying some daytrading in the ES Journal, I have found the following:

--Very little stress in position trading as compared to daytrading

--Easier to formulate strategies as the closing price on a bar means more in terms of sentiment of the professional traders (ie end of day etc).

 

[cashmoney69]

Position traders:

1. Do you trade JUST off TA, or do you dive into fundamentals of a company and economic conditions as well?

2. Are good day trading stocks ALSO good position trading stocks?.. ANDE, AAPL, ISRG come to mind.

---

side note:

I'm having problems with my stop losses. I place hard stops anywhere from .50 to 1.00 below the current price.

Right now I swing trade, but even now, is this too tight of a stop or too loose?

or maybe my stock picking just sucks.

Any professional advice is greatly appreciated.

- Nathan

 

[stock_trad3r]

if it gets too painful, do the opposite

 

[krazykarl]

Quote from cashmoney69:

Position traders:

1. Do you trade JUST off TA, or do you dive into fundamentals of a company and economic conditions as well?

2. Are good day trading stocks ALSO good position trading stocks?.. ANDE, AAPL, ISRG come to mind.

---

side note:

I'm having problems with my stop losses. I place hard stops anywhere from .50 to 1.00 below the current price.

Right now I swing trade, but even now, is this too tight of a stop or too loose?

or maybe my stock picking just sucks.

Any professional advice is greatly appreciated.

- Nathan

stop-loss orders are foolish. keep your stops mental and DO NOT enter the order with your broker - all you are doing is adding liquidty to the market.