Ok....same prob as you had, Suzanne - where to start. BTW, I will use this opp and tell you how glad I am to see the beautiful half of human race in our business and here on forum. Will be glad to see you participating more...
I think I will try to show good and bad sides of each aproach and let others decide whats better: positional trading (PT) or intraday trading (IT).
Stops:
PT:
good:
big stop = less chance to get stopped in case you're in the right direction;
bad:
in case stopped, bigger loss.
IT:
good: little stop = little loss
bad : even if you enter and the price will be at your tgt in 5 min, you may get stopped before it happens
in case you use bigger stope in intraday trading (50+), than you're playing against fair money management strategy. In intraday trading, tgts are around 50 pips +/- 10-20 pips. So one cannot use that big stops...
sitting in front of the monitor:
PT:
good:
no need to sit in front of the moniroe all day, and after moving stop to breakeven, one can leave if there are no other current or expected trades. Usually even if trade closed at breakeven, reentering doesnt appear immidiately. It takes time.
bad : -
IT:
good: not much - been there, done that.
bad :
siting in front of the monitor untill one/couple trades are made, sitting during the trade, and untill its closed. Lots of stress...very
tiresome. Stressed man cannot think clear and its harder to concentrate. I.e. hurting future trading.
Fundies:
PT:
good:
having positional trade, fundamental news can not make that big affect on market. Even if direction is down, and news indicate up, market will move, but not that much to hurt your position
IT:
bad :
Your position may be stopped because of soem news/data. Though eco data dont have such a great impact on market anymore, it still can move market 20-100 pips against the major direction. Do IT stop has no chance to survive. Well, this was partially covered earlier.
PT:
less chances to get into wrong direction, as PTrader usually uses longer term charts, and is not bothered by 1 and 5 min charts. Therefore has better chances to enter with the trend, and not against it.
IT:
has to follow shorter term charts and signals of his system,
including trades against trend on larget term charts.
Time frames:
PT:
good: using several time frames gives better idea about main direction
bad :
Using several time frames may be confusing and there may be conflict between diff frames about the direction...
IT:
good:
Less confusion - easier to make decision.
bad :
may trade against stronger trend on bigger time frame.
Once I remember more, I will post...
And as Suzanne said - think about it: why is IT/scalping so popular? Is'nt it because its more advertized and advised...? The only once interested in it are brokers and their affiliates. As far as I know, most institutional/bank/fund traders are mostly trading longer term? hmmmmm interesting, is it?
Good Trades no matter IT or PT
Rezo.
Licensed Brokers
Day trading or positional/longer term trades?
Paul Koszarny
Linear Mode
