One of the reasons I like Position Trading

[nlslax]

Quote from Cesko:

........ don't understand why people want to knock other people's strategies. Whatever works my friend

Because they do not understand that sticking to one's method is more important than method itself.

Well put.

 

[cashmoney69]

I've been looking at weekly charts for this coming week, and was wondering sinse you guys are position traders, maybe you can help me with this chart.

CSTR (Coinstar)

What is making this stock hit top and bottom if its not the volume from buyers and sellers?

Thanks in advance

 

[Buy1Sell2]

Quote from Cutten:

This idea that position trading is easy is just folly.

yes correct. I am not making any assertion that position trading is easy, at least not at first. However, it is much easier for the vast majority than day trading is.

 

[Buy1Sell2]

Quote from cashmoney69:

I've been looking at weekly charts for this coming week, and was wondering sinse you guys are position traders, maybe you can help me with this chart.

CSTR (Coinstar)

What is making this stock hit top and bottom if its not the volume from buyers and sellers?

Thanks in advance

Not certain that I understand the question, but at the top, there were no more buyers at that price.

 

[cashmoney69]

Quote from Buy1Sell2:

Not certain that I understand the question, but at the top, there were no more buyers at that price.

The stock as you can see is rising and falling, but when you look at volume, its flat......yet the stock keep climbing.

 

[Buy1Sell2]

Quote from cashmoney69:

The stock as you can see is rising and falling, but when you look at volume, its flat......yet the stock keep climbing.

Price can move a great deal without much volume.

 

[thriftybob]

CSTR

To me it looks like its fundamentally somewhere between fairly valued and overpriced, but beating estimates, even though they were low, got people to cover.

With a short interest ratio of 13 and being a low volume stock, its basically a play on hoping for a short squeezes, from the looks of it, IMO. If I was long, I'd take my profits and wait to buy at the next downleg unless I knew it was going to grow earnings.

With a forward PE of 24, you can't expect it to up that high unless the future will be better.

BTW: I'm what you people call a position trader. Stocks like that are dangerous, though, because there isn't enough volume to get in or out, so you really want to make sure its a real bargain if you are going to buy it. I'd wait for a retest of the recent bottom, or at least a pullback.

 

[thriftybob]

Quote from Buy1Sell2:

Price can move a great deal without much volume.

Yes, sometimes that's a great opportunity. When the price moves up on low volume, and THEN shorts realize its significantly undervalued, its surprise time, because they see its not going back down, and they get frantic to cover before it goes higher on them. Its a sweet play if you can find it.

 

[nysekiller]

Quote from alexm:

NYSEKILLER seems to do very well and he seems to close the positions end of each day. NYSE you have anything to add to this mix? And you have to love how everyone wants to hate the daytraders. I trade maybe 2-4x a day, I close positions at the close of every day, and I have been doing this successfully for the last 5 years. There are lots of strategies that can work for different types of people -- I don't understand why people want to knock other people's strategies. Whatever works my friend.

I just let them hate. It doesn't make any difference to me, but I was under the impression that we are all here to make money and it shouldn't matter how we do it. Oh well. For the most part I do close out my positions at the end of day, due to the lack of larger BP. I could use my system over a longer time period (days) and make more money, but you need money to make money.

 

[Buy1Sell2]

Quote from nysekiller:

I just let them hate. It doesn't make any difference to me, but I was under the impression that we are all here to make money and it shouldn't matter how we do it. Oh well. For the most part I do close out my positions at the end of day, due to the lack of larger BP. I could use my system over a longer time period (days) and make more money, but you need money to make money.

No one is hating. I am just pointing out my view that position trading is a better route for most than day trading. What Mr Jones means by 95 percent losers is not that daytraders are dregs, but simply that 95 percent lose money. There are some people of course that can and do make money day trading. It is interesting here to read your last sentence because it leads to my next point which is that those daytraders who are successful, probably would be even more successful position trading.