Day Trading or Position Trading? - Page 4
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  1. #31
    Join Date
    Aug 2011
    Posts
    48
    Day trading the H1 charts here...so I'm hardly ever in trades for more than 24hrs at a time. Sometimes if I feel a trend might continue I leave a quarter of my position on an let it run.

  2. #32
    Quote Originally Posted by SoundOfLight
    first, i disagree that "trading xxxx style requires more capital that trading yyyy style". no matter what you trade and how long you keep your trade, you have to adjust your position size accordingly. the shorter your expected trade duration the larger the position you can take given the same balance. you shouldn't be looking to earn PIPS, you should be looking to earn PERCENT INCREASE IN EQUITY. on short term, you need to make that happen with 20-50 pips so each pip has to be worth X. on long term, you need to make that same gain happen with 100-300 pips, so each pip has to be worth Y (which is less than X).
    Im not sure I'm getting it. Isn't it that if you're trading short term your risk is smaller than if you were trading long term?

  3. #33
    Join Date
    Oct 2012
    Posts
    20
    I think your right but some can trade daily signals and still keep a tight stop. That is what I want to learn myself.

  4. #34
    Join Date
    Sep 2012
    Posts
    547
    Quote Originally Posted by sentinel View Post
    I think your right but some can trade daily signals and still keep a tight stop. That is what I want to learn myself.
    It is all relative. A tight stop on a 5 minute chart may only be a handful of pips. A tight stop on a daily, depending on your trading strategy, may be 50-100 pips. Position trading is looking at 3 months to a year or more. A tight stop is hundreds of pips, at the minimum.

  5. #35
    Join Date
    Sep 2012
    Posts
    547
    Quote Originally Posted by OMFGWTF View Post
    Im not sure I'm getting it. Isn't it that if you're trading short term your risk is smaller than if you were trading long term?
    The risk is calculated on the number of pips between entry and stop loss using a set percentage (2% for example). On a small timeframe you have, comparatively, only a few pips so your position size can be greater when risking a set percentage. On a large timeframe you have much wider stops and therefore more at risk if risk is calculated using the same set percentage so the position size is smaller.

    A generally accepted position size calculation is: R/P=S
    R=Risk Capital Percentage (2% of capital you are willing to risk on a trade, for example)
    P= Pip dollar estimate (Standard lot 1 pip =$10, Mini 1 pip = $1, micro 1 pip =.10).
    S= Size of position to trade

  6. #36
    Join Date
    May 2012
    Posts
    143
    Day Trading is the best.

  7. #37
    I prefer taking short term positions. Maybe positions that last for few hours to just several days.

    jobbing the market just doesnt seem to work. You tend to lose your discipline.

  8. #38
    Join Date
    Sep 2012
    Location
    Perth, Australia
    Posts
    26
    It all depends on yourself. If you force yourself to trade in a way you're not comfortable with you won't succeed.

    If you prefer to get in and out and not linger around in the market then you should go for day trading. It's a more interactive and potentially stressful time where you'd have to keep an eye on the charts regularly through the course of the trade.

    If you don't mind staying in trades over days to months then you would go position trading. Generally these are less stressful as you have time to analyse your place in the market and act on it. You wouldn't need to constantly look at the charts every minute but at least once a day. If you're going to lose sleep worrying about leaving positions open overnight though then you might need to reconsider. One other thing to consider for position traders is rollover/interest differentials - these can add up over time.

    For myself I'm a position trader (for now). Currently I have 27 open positions running and usually have between 10-30 positions runnning at all times. Rollover is hitting me for around 0.2-0.3% of total capital per day so I have to overcome that cost each day to run a profit.

  9. #39
    Join Date
    Oct 2012
    Posts
    43
    Hi TonyIommich, I read ur opinion and got in stuck because I want to be a scalper as I am and thinking to be a full time trader as I've just lost my job. after one month forex demo trading I placed my trade in real ac on Aug 17th 2012 and till now I have placed the total orders 159 orders (if I have lost my job at the first when i lost my job the numbers of orders might be goes in five figures) and out of 159 orders only 29 orders was in minus, rest I managed to close in positive points. And yeah The amount I STARTED WITH WAS ONLY $100.00 I've almost same amount in my ac (I did some foolish task in my initially trade such as i clicked on close order instead of clicking on change order to set stop loss and i lost $19.00 and $25 once as i have not enough money to hold the loss). I am hopping to get $200 and $100 i have already and will do trading

    AND PLS ADVISE ME THE BEST BROKER WHO TAKE SMALL COMMISSION CURRENTLY I PAY TOO HIGH I THINK
    Last edited by tom magar; 10-21-2012 at 02:16 PM.

  10. #40
    Join Date
    Nov 2009
    Posts
    325
    Hi there Tom,

    First off, if you lost your job and you want to make a living trading full time, unless you have been at this game for several years, have enough risk capital (at least $50,000 you are willing to risk), and have a track record, I think its a recipe for disaster. Even if you're doing well at the moment with a short term strategy, markets change and your hot streak can turn cold.

    My advice, find some part time work, and find time to watch and trade the markets during the day time. Develop a solid methodology. If you like scalping, check out Bob Volman's book Forex Price Action Scalping - that should give you plenty of ideas (you can use a 30 second chart instead of paying for the 70 tick, it does almost as well imho). Take exhaustive notes of your trading day, share your trades with others, etc. Read some Brett Steenbarger (he has a blog with lots of free articles) which will give you ideas on how to fine tune your performance and develop as a trader.

    Prepare to easily put in several years before you can comfortably do this for a living. I also did extremely well in my first stab at trading. Then I realized life is not so simple. Some people have been lucky, e.g. they started trading when the market was ripping and roaring (e.g. 2008 financial crisis) and were able to do very well in a short amount of time (usually by leveraging like crazy). But once volatility and volume leave the market you end up with a totally different ball game, and more often than not that is how the market is. Take this August, for example. Very tough market to trade from both a technical and fundamental level. Fundamentals in my view should have seen the Euro break 1.20. Yet it got bid and chopped its way up to 1.31 despite the fact that a Greek exit was pretty much Wall St consensus. That's markets for you.

    I often like to read this post from this forum for inspiration: trading for a living - an example of a guy who made it (you can tell because he never used this to become some guru, just made 2 posts and moved on).

    As for brokers, if you are scalping you have to find someone with low commissions. I like Oanda because it lets me review my trades easily after I take them. They do EURUSD for about 1 pip. Some offer even less if you look carefully.

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