Position Trading

K

KGTrader4

I’m starting to feel like position trading suits my personality AND my time constraints better than Swing. I play a lot of golf, practice guitar a lot, and am a news junkie. I’m finding I’m spending more time than I want to, in front of the screen, looking for ideas, monitoring stops, and I’ve barely gotten started. I live in New York but travel to Florida in the winter, so I like to be outdoors a lot. I have 2 grandkids that I want to spend time with.

so I’m thinking of position trading as a way to be/stay involved without giving up my other interests.

one thing I need to get more clarity on. I’ve read about it but I need more clarity…. What’s the diff between position trading and long term investing, in terms of proper risk management?

please don’t beat the shit out of me, I’m just trying to find myself LOL.
 
KGTrader4 said:
I’m starting to feel like position trading suits my personality AND my time constraints better than Swing. I play a lot of golf, practice guitar a lot, and am a news junkie. I’m finding I’m spending more time than I want to, in front of the screen, looking for ideas, monitoring stops, and I’ve barely gotten started. I live in New York but travel to Florida in the winter, so I like to be outdoors a lot. I have 2 grandkids that I want to spend time with.

so I’m thinking of position trading as a way to be/stay involved without giving up my other interests.

one thing I need to get more clarity on. I’ve read about it but I need more clarity…. What’s the diff between position trading and long term investing, in terms of proper risk management?

please don’t beat the shit out of me, I’m just trying to find myself LOL.
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This is the definition per Investopedia. Personally, I just follow the trends as long as it remains intact. They call it trend following. I guess position trading, trend following, long term investing could be one and the same thing. It calls for taking profits using trailing stop losses to take you out of a trade.


https://www.investopedia.com/terms/p/positiontrader.asp
 
nooby_mcnoob said:
Sounds like a fancy name for swing trading.
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Really that's all it is. I call it speculating.
You build a position. The difference between position trading and long term investing is risk management.
A long term investor buys a position and holds it through the ups and downs.
A position trader buys a position and holds it as long as the price moves in their direction.
Price moves agaisnt you, you get out and look for another opportunity.
 
KGTrader4 said:
I’m starting to feel like position trading suits my personality AND my time constraints better than Swing. I play a lot of golf, practice guitar a lot, and am a news junkie. I’m finding I’m spending more time than I want to, in front of the screen, looking for ideas, monitoring stops, and I’ve barely gotten started. I live in New York but travel to Florida in the winter, so I like to be outdoors a lot. I have 2 grandkids that I want to spend time with.

so I’m thinking of position trading as a way to be/stay involved without giving up my other interests.

one thing I need to get more clarity on. I’ve read about it but I need more clarity…. What’s the diff between position trading and long term investing, in terms of proper risk management?

please don’t beat the shit out of me, I’m just trying to find myself LOL.
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Don't do it. Not now, with the war in Europe going on.

You have 2 grandkids you want to spend time with? Well, you need money to do that. Don't position trade at this time. Just invest, earn the yields, but the high quality stocks, don't fick with long-term levered trades. We're not in a good place. Powell is going to blow his load in two months, the VIX has dropped to an unnatural level in this geopolitical environment...

Just catch your yields on the stuff you have while we get through this war/inflationary environment.

This way you will have time to be with your grandkids.

 
smallfil said:
This is the definition per Investopedia. Personally, I just follow the trends as long as it remains intact. They call it trend following. I guess position trading, trend following, long term investing could be one and the same thing. It calls for taking profits using trailing stop losses to take you out of a trade.


https://www.investopedia.com/terms/p/positiontrader.asp
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yeah I read that piece, it’s where I got the idea. Just seems it would take less of my time.
 
deaddog said:
Really that's all it is. I call it speculating.
You build a position. The difference between position trading and long term investing is risk management.
A long term investor buys a position and holds it through the ups and downs.
A position trader buys a position and holds it as long as the price moves in their direction.
Price moves agaisnt you, you get out and look for another opportunity.
More...

But aren’t you working with looser stops and higher potential upside due to longer time frames.
 
KGTrader4 said:
But aren’t you working with looser stops and higher potential upside due to longer time frames.
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I'm not. I don't want to hold a position that moves against me.
I don't take profits quite as quickly. I set initial targets but watch as price moves to those targets. I may only take part of the position off at the target then add back on as price increases. I'll trail a stop to avoid taking a loss.
I've held a stock as long as nine years as it never really gave me a reason to sell.
 
Position trading is certainly might be pretty useful.
Advantages of position trading are many. Most of the time the novice traders trade the short time frame in the market with high lot size and blow their entire trading account.
Less stress: One of the biggest advantages that position traders have got is they have less stress in the market than other traders. Day traders and scalpers who trade the market has a high risk and market volatility of losing their profit. They can also lose their capital in the market. Position traders are saved from this stress. They can trade the market with time.
 
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