Day Trading & Forex Forum

badd boi

Hi I am a newbie(still a virgin - trading that is!), so haven't traded yet.

Please could some one please explain the difference
between SWING & POSITION TRADING.
Is it a question of timing(we are still talking about trading here!)

Thanks,
Badd Boi(bad, bad Badd Boi !!)

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anley

Hiya BB

Swing trading is a clever marketing term invested by brokers/system sellers and book authors to give the illusion that people can make excellent money by catching all/most the 2-10 moves up and down in a market.

For example, say the FTSE is at 4000, it moves to 4100, then down to 4050 then up to 4200 then down to 4100 then up to 4350 then down to 4250 etc etc.

The swing traded would attempt to buy then sell short, then buy, then sell short, then buy, then sell short so profiting from all the 'swings'.

A position trader however would just buy at 4000 (on the assumption that the market was going higher) and sit through all the swings on the assumption say that he's be selling at 4500.

OK, I'm being a bit cheeky in describing swing trading but I'm not that far wrong from the truth either!

badd boi

Hi Anley,
In what time-frame does this usually take place, intra day, daily, weekly or monthly in your example?
Again, what time period are you talking about?.

Sorry to be so dense on this matter.

Do you know of any books on Swing / Position Trading.
I know about Marc Rivaland's on Swing Trading.

Thanks,
Badd Boi

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One man's Bid is another man's Offer.

tips

Hi Baddboi,

Generally Swing Trading is done on a Daily/15mins chart and can last from 2 days upto a week, I.E. as long as the trend is moving your way..As soon as you find the trend going in the opposite direction you close the trade and try to look for getting in the opposite direction now I.E again if you find a good entry point. Swing trading is very famous among traders as one can capture most of the profits of the market momentum.

As for Position trader, a single trade can go from a few weeks to even a couple of months I.e, again if the overall trend is moving in the correct direction. Position traders have less interest on daily moves therefore their aim is to try to capture profits on the whole, I would rate it as much safer strategy as long as you know your stuff... Once the trade starts moving your way, you use trail stops to capture profits, Position traders look at daily/weekly charts to look for a change of the overall trend.

If you are just starting out to trade, I would say first you require have a good knowledge of the Technical Analysis....which can surely help with your Swing trading., infact Swing Trading is very much based on the TA. Hope this helps...

badd boi

Hi Tips,

Thanks for the help, it's very much appreciated.

Yes, I couldn't agree more about the TECHNICAL ANALYSIS, it's crucial I feel, for me.

Do you generally SPREAD BET, trade FUTURES / OPTIONS or use CFD's,
when you SWING or POSITION Trade?
What's the safest for a newbie?

Thanks,
Badd Boi

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One man's Bid is another man's Offer.

andrewmooton

Would anyone like to give their opinion on what technical analysis is good for swing trading?

Tips, do you agree with anley that swing trading is just a marketing ploy?

Rainmaker

Take a look at the Marc Rivilland book on the subject - it's pretty good.

TheBramble

Certainly.

While the trend is up - be long.

While the trend is down - be short.

If you're not sure what the trend is - get out or stay out.

Only be in one of those trades at any one time.

You think I'm kidding?

It really is that simple.

That'll be £999 with a t2w discount of, well 100% actually.