Position Trading??

[mikeyk]

Hello,

I was wondering if anyone might be willing to explain the basics of Positon/Swing trading to me. Or if anyone knows of good threads or books.

Because I work fulltime I'm thinking about position trading or end of day trading. Are these two the same style?

Any info would be much appreciated

Cheers

 

[Skimbleshanks]

Position trading is just trading individual swings in the market, both long and short. These appear in all timeframes - there are swings in the 5 min charts and swings in the weekly chart - so there are plenty of different timeframes to choose from.

Any technical analysis book will contain the basics, although Alan Farley's book The Master Swing Trader probably has it all - but it is a big book, jam packed with stuff, which therefore works against it as it is not an easy read. If you do get it, start with chapter 5 and read to the end, then read chapters 1-4.

 

[mikeyk]

Much appreciated skimbleshanks. I shall have a look at the mentioned book

 

[Denny]

Swing Trading

"Come in to my trading room" by Dr. Alexander Elder is also a good book. This book is not specifically about swing trading but much of the techniques involved are swing trading anyway.
I think the term Swing Trading is often a misnomer as we all try to buy (sell) shares on a pull back from the main trend whilst still trading with the overall trend.
It is often only the timescales that are different among different traders.
For instance I always look at the weeky chart first and then trade the daily chart on pullbacks, however some of my trades I have held for over a year, which the purist would say is not swing trading. But I always say hang on to your good shares and get rid of the bad.
I think it is a very broad church.

 

[BroadSword]

.

 

[tomorton]

Hi all. Would like to open this up and throw some wood on the fire.

There's a huge contrast between the styles of the leading swing traders Alan Farley and Marc Rivalland - Farley builds multiple rich layers of evidence which a team of top traders working together full-time would find it difficult to replicate: he is a true expert on TA - can tell you more and more about less and less. Rivalland sees the main trend and enters on the pull-back, with a couple of supporting indicators.

Both claim to make money. Both admit to sometimes receiving false signals. Its possible to back-test and mimic Rivalland, but Farley has too many factors and criteria and rules to be a practical, replicable guide. Its important to know you've got a signal when you think you have, even if the market later turns your fine plan into a dog's dinner. Rivalland's less work.

 

[pkfryer]

I get confused about the term swing trading. I would assume swing trading as a technique applies only to shares that are not trending, using oscillators to time buy and sells, covering and going long, selling and going short. Staying in the market most of the time, until the share starts to trend.

Where as I would consider position trading applying to stock that is trending. You get a position as close to the beginning of the trend as possible (even if the trend is only lasts for a few weeks) and ride it until your trend following indicators show a reversal is likely.

Day Trading I would assume to use swing and position trading as an approach where needed but on a much shorter time frame?

Is this right?

 

[josbarr]

Few other good books to read.......

Street Smarts
by Laurence A. Connors & Linda Raschke

Hit and Run Trading II -
by Jeff Cooper

Hit and Run Trading -
by Jeff Cooper

 

[fastnet]

Hi Josbarr - could you recommend either of the jeff cooper books?? should I read them in order?

thanks for any advice - FN