Position, Swing or Day Trader

paszkman

Established member
649 54
Hi everyone, I was just wondering what is the difference between a position, swing and day trader?

Also, what kind of chart time-frames should each of them look at?

And finally, how do I know which one I am?

Thanks
 

NVP

Legendary member
37,581 2,007
Hi everyone, I was just wondering what is the difference between a position, swing and day trader?

Also, what kind of chart time-frames should each of them look at?

And finally, how do I know which one I am?

Thanks

hey mate

its all about timeframes mainly ............you are probably trading similar systems but trading on different timeframes from lows (5min-15m) to medium (1hr) to higher (4h daily).........so really all just semantics in the end ;)

most people state that higher timeframes are more reliable and profitable................problem is that you wont get the volume of trades to make a decent living (based on allocating reasonable % capital per trade)

N
 

new_trader

Legendary member
6,570 1,428
Hi everyone, I was just wondering what is the difference between a position, swing and day trader?

Also, what kind of chart time-frames should each of them look at?

And finally, how do I know which one I am?

Thanks

Technically speaking, it isn't the time-frame that determines what type of trader you are, it is the length of time you hold a trade.

Generally speaking

1) Day Trader: Opens and closes a trade on the same day. Usually during cash market hours.

2) Swing Trader: Opens and closes a trade within a few days.

3) Position Trader: Holds a trade open for weeks or even months.

After a while you will realise that there isn't a clear demarcation between 2 & 3 but strictly speaking, a day trader should always close a position on the day it is opened, whether it is in profit or loss. However, most day traders will ignore this rule if it looks like the momentum is strong enough in their favour to continue holding overnight. The flip side is day traders who will hold a losing trade in the hope it will recover the next day. Also, being a day trader does not mean you must trade everyday!
 

paszkman

Established member
649 54
Technically speaking, it isn't the time-frame that determines what type of trader you are, it is the length of time you hold a trade.

Generally speaking

1) Day Trader: Opens and closes a trade on the same day. Usually during cash market hours.

2) Swing Trader: Opens and closes a trade within a few days.

3) Position Trader: Holds a trade open for weeks or even months.

After a while you will realise that there isn't a clear demarcation between 2 & 3 but strictly speaking, a day trader should always close a position on the day it is opened, whether it is in profit or loss. However, most day traders will ignore this rule if it looks like the momentum is strong enough in their favour to continue holding overnight. The flip side is day traders who will hold a losing trade in the hope it will recover the next day. Also, being a day trader does not mean you must trade everyday!

Ok, thanks for the reply!
 

paszkman

Established member
649 54
hey mate

its all about timeframes mainly ............you are probably trading similar systems but trading on different timeframes from lows (5min-15m) to medium (1hr) to higher (4h daily).........so really all just semantics in the end ;)

most people state that higher timeframes are more reliable and profitable................problem is that you wont get the volume of trades to make a decent living (based on allocating reasonable % capital per trade)

N

Thanks!
 
 
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