Trading: directional or non directional?

This is a discussion on Trading: directional or non directional? within the General Trading Chat forums, part of the Reception category; I make this thread because, with a forum in which majority are losers, i think it'd be interesting to highlight ...

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Old Jul 5, 2010, 9:58pm   #1
Joined May 2010
Trading: directional or non directional?

I make this thread because, with a forum in which majority are losers, i think it'd be interesting to highlight that directional trading may be a cause, or not. Directional trading to me is using discretion...like buying support etc , non directional stuff like arbitrage and spreads.

what way do you trade? do you have any opinions on the other ?
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Old Jul 5, 2010, 10:08pm   #2
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Re: Trading: directional or non directional?

Quote:
Originally Posted by Chartsy View Post
I make this thread because, with a forum in which majority are losers, i think it'd be interesting to highlight that directional trading may be a cause, or not. Directional trading to me is using discretion...like buying support etc , non directional stuff like arbitrage and spreads.

what way do you trade? do you have any opinions on the other ?
Directional, buying support etc as you said. So far so good this year +35%, but all could change...!
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Old Jul 5, 2010, 10:09pm   #3
 
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Re: Trading: directional or non directional?

directional with hedging. 40% for june.
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Old Jul 5, 2010, 10:10pm   #4
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Re: Trading: directional or non directional?

I think all types of trading require the same basic traits (discipline, resilience to losses, etc) in order to be successful, regardless of whether you're picking direction or doing arb.
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Old Jul 5, 2010, 10:28pm   #5
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Re: Trading: directional or non directional?

What's the hypothesis here, that directional trading is bad?
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Old Jul 5, 2010, 10:32pm   #6
 
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Re: Trading: directional or non directional?

''Directional trading to me is using discretion...''


What a strange statement to make. Directional trading can be done using a mechanical system therefore by definition there will be no discretion involved.

R
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Old Jul 5, 2010, 10:32pm   #7
 
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Re: Trading: directional or non directional?

It is a rare trade that is completely non directional.

Now you can say "but the view wasn't taken on the direction of the market" - and yet I could give counter examples to both the logical possibilities there.

For example, you can take a non directional view by shorting a stock, typically.

Or you can take a directional view by buying straddles or calendar spreads. In fact with the latter, in certain circumstances, you've just changed your non directional view on a commodity to a directional view on interest rates...

Anyhow, just think of price as one axis, think of trading as multidimensional... a field... then everything is directional
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