Swing or Position What's the Difference?

badd boi

Member
52 1
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 !!)
 
Last edited:

anley

Senior member
2,730 229
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

Member
52 1
anley said:
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'.
Hi Anley,
In what time-frame does this usually take place, intra day, daily, weekly or monthly in your example?
anley said:
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.

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
 

tips

Junior member
11 0
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

Member
52 1
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
 
Last edited:

andrewmooton

Active member
192 1
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?
 

TheBramble

Legendary member
8,394 1,170
andrewmooton said:
Would anyone like to give their opinion on what technical analysis is good for swing trading?
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.
 

andrewmooton

Active member
192 1
but how can you know if its acually trending and not just moving up and down 'erraticaly' for want of a better word?
 

trendie

Legendary member
6,840 1,398
Doesnt the adx indicator show a propensity to trend ?

I use "Adaptive Moving Averages" - they go "flat-line" when the market is in a range.
I use trend-following rules when the lines are moving.
I use oscillator rules to scalp when the lines are flat !!
 

anley

Senior member
2,730 229
Swing trade 2-10 days

Position trades 2-100 weeks

Although there are no real set rules
 

badd boi

Member
52 1
Rainmaker said:
Take a look at the Marc Rivilland book on the subject - it's pretty good.
Hi Rainmaker thanks for the reply.
Yea I here it's a really good book
Does it cover Position Trading too?
Badd Boi
 

badd boi

Member
52 1
anley said:
Swing trade 2-10 days

Position trades 2-100 weeks

Although there are no real set rules
Hi Anley,
Don't you mean 2 - 10 weeks?

badd boi said:
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

What about my previous question on this thread (see above) to do with the type vehicle you'd use to make these trades?
As I am unsure which one to use and which would be the safest for a beginner.
No I don't mean what sort of car you drive or what's the safest Anley!
Or can anybody please help!
Thanks
Badd Boi
 
Last edited:

techst

Active member
243 3
Hi Bad,
Im a swinger and I use CFD's for my trades. The trades i can put on last between a few days and a few weeks. It's nice to see so my textbook style definitions of what a swing and position trader is and does.
Is there any others that are swing and position traders about this thread? Any other questions Badd Boi?
Thanks for reading
 
 
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