Trading: directional or non directional?

C

Chartsy

Experienced member
Messages
1,129
Likes
84
I make this thread because, with a forum in which majority are losers, i think it'd be interesting to highlight that directional trading may be a cause, or not. Directional trading to me is using discretion...like buying support etc , non directional stuff like arbitrage and spreads.

what way do you trade? do you have any opinions on the other ?
 
Chartsy said:
I make this thread because, with a forum in which majority are losers, i think it'd be interesting to highlight that directional trading may be a cause, or not. Directional trading to me is using discretion...like buying support etc , non directional stuff like arbitrage and spreads.

what way do you trade? do you have any opinions on the other ?
Click to expand...

Directional, buying support etc as you said. So far so good this year +35%, but all could change...!
 
I think all types of trading require the same basic traits (discipline, resilience to losses, etc) in order to be successful, regardless of whether you're picking direction or doing arb.
 
''Directional trading to me is using discretion...''


What a strange statement to make. Directional trading can be done using a mechanical system therefore by definition there will be no discretion involved.

R
 
It is a rare trade that is completely non directional.

Now you can say "but the view wasn't taken on the direction of the market" - and yet I could give counter examples to both the logical possibilities there.

For example, you can take a non directional view by shorting a stock, typically.

Or you can take a directional view by buying straddles or calendar spreads. In fact with the latter, in certain circumstances, you've just changed your non directional view on a commodity to a directional view on interest rates...

Anyhow, just think of price as one axis, think of trading as multidimensional... a field... then everything is directional :)
 
I would guess that the median sell side trader makes more than the median buy side trader does.

"where are all the customers yachts?"

(I know this does not specifically answer the question, but I thought it pertinent).
 
arabianights said:
It is a rare trade that is completely non directional.
Click to expand...

Well isn't it the case than the only non-directional trade is a pure arb?

Whether it be the Spot price, the term structure of interest rates, volatility, correlation, whatever... at some level your trade (unless it is pure arb) needs to take a directional, speculative view on a market of something, otherwise where do you get your risk - in order to earn your return - from?
 
MrGecko said:
Bet thats fúcking great in Scotland.
Click to expand...

The QE2 was built in Greenock ;)

P.S. To defeat the swear filter, rather than having accents all over the place, just place a tag in the middle, viz: penis. Not sure the site can cope with foreign.
 
I'v changed my mind, I've just read the text below about Everest and you would have to dock in a commercial, cruise-ship terminal.
 
Rossini said:
If I liked yachts, I would defiantly like that one.
Click to expand...

As an aside, if I am ever in a position to buy a fancy boat, I would certainly go for a proper sailing yatch over a motor-cruiser type. When I lived in Gib my apartment looked over the marina (the nice one) and there would always be Sunseekers, Princess's (?) et al from about 50 - 70 feet. Occaisionally a **** off charter would come in and I'd go and have a look - some of them are literally awesome. Notwithstanding the motor cruisers, the sexiest boat I ever saw was one of these*

* if memory serves, it was an 85, but I couldn't find a link. Same principal though.
 
You must log in or register to reply here.

Similar threads

S
Directional trades
Replies
3
Views
2K
Benton D Struckcheon
Benton D Struckcheon
C
problem of directional bais
Replies
1
Views
1K
God Of Pips
G
M
direct access???
Replies
6
Views
3K
TheBramble
T
T
Direct Access FX trading?
Replies
1
Views
3K
spreadboy
S
G
MiFID “Best execution” directive
2
Replies
25
Views
7K
gle101
G
Top