Position Trader
What do position traders wait for in a trendline?
A peak
How does a scalp trader work?
Makes profit off of little changes in price to make a quick profit from reselling
Name one strategy you can use as a swing trader?
The MACD crossover strategy.
when is the best time to trade
first two and last tow hours of the trade
What is the most important quality to have as a position trader?
Patience.
What are some key data points a scalp trader should know before making a trade?
Current and future events, peaks and troughs of stocks, short term movements of the stock.
What is swing trading?
Taking trades which last a cup to a couple months in order to profit by anticipating price moves?
What is the biggest risk of day trading?
It's borrowing money to make profits.
What are the cons of position trading?
Watching stock rise and fall while you wait.
What is the importance of timing while scalp trading?
You must know exactly when to buy a bunch of stocks (when they are at a low point). Also, immediately after a small price increase occurs you must be ready to sell your stocks or if price starts to drop sell so you can try to lose less money.
How long should you be holding your trades?
A couple months.
How does day trading work?
If the stock goes higher in the day then they will buy it and put money into it. But if it goes down in anyway they will sell to keep making more money.
What differentiates position traders from the other?
They focus on the long term payoff rather than buying and selling quickly.
What are the risks and rewards of scalp trading?
This is a low risk strategy because you only stay in the market for a short amount of time so there is pretty much no chance of a massive price drop. The reward per stock is also low because you are selling based on small price increments. But, you can make a decent profit off of buying a ton of volume and then selling them all for small profits (it all builds up)
How much do you want to start with when you’re swing trading?
$5000-$10000
What is an example of day trading?
10 shares of A are purchased. Later that day, 5 shares of A were sold.
What is an example of position trading?
Someone invests $10000 into a stock and waits for it to reach a high peak to exit, this means you will have to observe the stock rise and fall multiple times before you pull out.
Give an example of scalp trading?
A trader wants to profit off of ABC stock currently going for $10. He/she will buy 50,000 of these shares. Then, sell when their prices increase by an extremely small amount, for example, an increase in $0.05. These small increments in profit add up to a lot because of the large amount of shares they buy/sell.
Is it smart for swing traders to invest in trades with a high risk?
No you want to wait for more favorable opportunities .
What's a reward of day trading?
Making 10% to 20% of the stock.