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
May I ask a stupid question? Okay, another stupid question. A really noob question, I warn you. (But I'd sure appreciate your help.)

How does 'position trading' differ from swing trading or other forms of trading? Do you buy a portfolio of stocks which you trade around by selling shares on dips, and buying more or rallies?
 
Quote from foible:

May I ask a stupid question? Okay, another stupid question. A really noob question, I warn you. (But I'd sure appreciate your help.)

How does 'position trading' differ from swing trading or other forms of trading? Do you buy a portfolio of stocks which you trade around by selling shares on dips, and buying more or rallies?
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The holding period is what really defines a position trader from a swing trader. Just like scalping and Swing trading. Swing trading can be done intraday as well, but a scalper would not hold a stock for more than 5 minutes, while a swing trader would have no problem holding for 5 minutes or perhaps many hours into the trading day.

Having a portfolio is important because position trading is also considered "Short term investing". Having a good portfolio can speed up gains, and protect against losses.

I'm thinking about going long on MSTR, and shorting GRMN. One stock will gain if the market moves up, and one will gain in a decline. The market has to go somewhere.
 
After some thought this Saturday, I dont think position trading is any easier then day trading. These words come from an unprofitable trader, so my opinion probably isn't worth much.
 
There is one advantage to day trading over position trading and that is the ability to put more size on . This is especially attractive to newbies because of the promise of large gain while keeping the stop loss small. However, in the hands of newbiies, the money is generally lost fairly quickly. It takes a very experienced trader to exploit this one advantage.
 
Quote from Buy1Sell2:

There is one advantage to day trading over position trading and that is the ability to put more size on . This is especially attractive to newbies because of the promise of large gain while keeping the stop loss small. However, in the hands of newbiies, the money is generally lost fairly quickly. It takes a very experienced trader to exploit this one advantage.
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a lot of inexperienced traders simply do not have any other choice B1, not enough capital, so they are faced with 3 main choices - investing, options and low margin high leverage intraday trading.
 
I opened my account for 500.00, and told my parents that 500 dollars was crap when it comes to the market because you cant buy enough shares to make it worth the effort. They thought that I didn't have an appreciation for money...

IMO you should be able to buy atleast 100 shares of the stock you want, AND still have money left over (not margin). I was "going all in" on every trade, full margin and everything trying to make it work. I got more $$$ now so its not as big a problem, but thats one thing I think beginners should be careful of.
 
Quote from cashmoney69:

I opened my account for 500.00, and told my parents that 500 dollars was crap...........
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Do you have to get a signed permission slip from your parents before each trade?
 
Quote from romik:

a lot of inexperienced traders simply do not have any other choice B1, not enough capital, so they are faced with 3 main choices - investing, options and low margin high leverage intraday trading.
More...

I would suggest that those individuals not trade until they have enough funds then. However, that may be the money that fuels the market. Any thoughts?
 
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