Position Trading

KGTrader4 · Mar 30, 2022

Branos said:
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.

This is what I was thinking.

zghorner · Mar 30, 2022

Position trading can be stressful too...primarily because of the larger amounts of capital you will have wrapped up in one position. If it goes south, it hurts...if it keeps going south for months you can develop an ulcer lol.

KGTrader4 · Mar 30, 2022

Not so concerned about the stress I don’t get stressed about stocks since I was in the business for 20 years. More concerned about the time I need to devote

smallfil · Mar 30, 2022

KGTrader4 said:
Not so concerned about the stress I don’t get stressed about stocks since I was in the business for 20 years. More concerned about the time I need to devote

Just focus on moving your trailing stop losses higher on a good till cancelled basis as your stock goes higher. Less stress and somewhat like on autopilot. One day, you will get stopped out and it would be the time to close that trade. Less stress and time commitment too.

KGTrader4 · Mar 30, 2022

smallfil said:
Just focus on moving your trailing stop losses higher on a good till cancelled basis as your stock goes higher. Less stress and somewhat like on autopilot. One day, you will get stopped out and it would be the time to close that trade. Less stress and time commitment too.

That’s my plan.
Also, I tend to over trade, it’s another reason I think position trading will be more constructive

Scataphagos · Mar 30, 2022

KGTrader4 said:
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?

It's all the same... except for "degree".

A day trader is not willing to tolerate much of a move against his position before stopping out.

A swing/position trader will tolerate "more" of a move against him... but how much?

A long term investor will tolerate the largest move against him.

Pros and cons to each. Answers are subjective.

Word of advice... Learn Price TA. Whichever time frame you choose, you still need to be making high-probability decisions.

Scataphagos · Mar 30, 2022

zghorner said:
Position trading can be stressful too...primarily because of the larger amounts of capital you will have wrapped up in one position. If it goes south, it hurts...if it keeps going south for months you can develop an ulcer lol.

That's a major negative against the "long term" prospective.

Handle123 · Mar 30, 2022

Position trading in commodities way to go and hedge.

deaddog · Mar 30, 2022

Branos said:
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.

The only reason a trader has stress is because they don't know what to do in certain situations. If you know what you will do when any situation presents itself, then there is no stress, you just trade.

KGTrader4 · Mar 30, 2022

Scataphagos said:
It's all the same... except for "degree".

A day trader is not willing to tolerate much of a move against his position before stopping out.

A swing/position trader will tolerate "more" of a move against him... but how much?

A long term investor will tolerate the largest move against him.

Pros and cons to each. Answers are subjective.

Word of advice... Learn Price TA. Whichever time frame you choose, you still need to be making high-probability decisions.

I think if you know how to read a chart, when the trend changes it will become somewhat apparent. Maybe not obvious, but let’s say, detectable.and that in itself will limit losses. Seems like risk tolerance in position trading would be somewhat looser, but not off the charts (no pun intended) loose.