Position Trading Begins
I’m ready to begin position trading. Here are a few things I have been thinking about, when comparing position trading to day trading:
- I will make less trades, so I will pay a lot less in commissions
- My reward-to-risk return per trade should be much larger since I am making less trades (e.g. I hope to be making 20-30R on a winning trade instead of 2-3R
- One of my biggest concerns is that a position will gap against me. I’ll take as much precaution as I can to avoid this.
- I’d like to buy only strong charts of companies with strong earnings growth.
- Since I am no longer doing this for a living - but to build my wealth - I will have less pressure. This may be good for my trading, but it may also make me less careful.
