Friday, August 12, 2011

Day trading or taking positions

Anshul asks:

sudarshan bhaiyya i still feel in todays world of tablet computers also,it is positional trading which rakes in the real money.Intraday trading just keeps some chutta paisa going and keeps u engrossed. Yes in positional calls some times gap openings play havoc but partially dey can be hedged by buying at money options. Please give ur views

My Notes:

I do a lot of testing on trading rules. It is a hobby as well as a business. My conclusions are:

1. Swing Trades make the most money. These are trades with 1 to 5 days of time horzon.

2. Day trades are useful for keeping the trader occupied. These trades require significant trading skill. At least on automated systems, day trading makes less money than swing trades.

3. Position trades can be defined as trades with time frames of weeks to months. These trades make the most money but require proper stock selection. Since traders cannot ever know in advance which stocks will move the most, position trades are best suited for baskets of stocks / futures. You trade a lot of them and some will work out in a spectacular fashion.

6 comments:

rajamani said...

As a trader swing trading fascinates me the most

Nirav said...

Dear Sir,

As you have said that Swing Trades works well. So can you please suggest some good books of Swing Trading for the learning purpose.

Thank You.

Nirav Kansariwala.

amarjeet said...

respected sir,
i think 383 is bhrtiartl neck line .its right.pls answered.

Amarrdiip Kumaarr said...

Sir,
upon reading article first thing came in mind is should I shifty my way of trading. And did little postmotem of my trading career. and come up with intresting fact. which i have write in form of article.I would like you to post my article link (http://goo.gl/9u4iL or http://tradereward.blogspot.com) on your blog as current content may distruct new commers form achiving there gole.

anshul said...

big money always made on sitting on "position "for long time frame in trading

Kalpit Shah said...

I am a regular reader of your blog, kindly guide on the below:

1) Which chart periods are best for positional traders to follow?

2) Where should a positional trader place a stop loss?

Thanks for your guidance.