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.
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.
