Day, Position or Swing?

[montpro]

Hi, can someone please outline in detail the difference between day trading, swing trading and position trading. I think I have a general idea but would like to hear from the pro's on here.
Many thanks

 

[shadowninja]

Check out Main Page - Traderpedia as it gives very detailed descriptions of what each is and what skills are needed.

As a relative newbie, I prefer swing trading. It is a bit more costly in terms of stop losses (and therefore potential loss) yet much less stressful.

 

[alexander]

Hi, can someone please outline in detail the difference between day trading, swing trading and position trading. I think I have a general idea but would like to hear from the pro's on here.
Many thanks

Day trading: all open positions are closed during the same day.

Position trading: positions are kept for more than a day to take advantage of short term trends

Swing trading: a subset of position trading where the trader attempts to time swings and buy uptrend or sell downtrend corrections.

A position trader can be a day trader often as some positions may be opened and closed during the same day. For example, buy at the open of a day and close the position intraday if the exit price is reached. Same holds for swing traders.

Swing trading is much harder than position trading in general. It requires well-tested trading systems with excellent timing capability.

Alex

 

[shadowninja]

Erm!

 

[montpro]

Many thanks for all the replies, I now understand it alot better. With position trading would a trader hold a larger loss with the opinion that the position will change within days/weeks/months or will he plan his entry to minimise carrying excessive losses for too long?

To me it seems extremely hard to know when to enter at the exact point for continued profits and you may have to watch while 100/200 or more pips slip away before it returns. Is this part of the psychology of trading where newbie’s would exit for fear of continued & larger losses?