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Strategies & Market Trends : NetCurrents NTCS

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To: bobby is sleepless in seattle who wrote (3595)11/4/2000 11:43:37 AM
From: Teresa Lo  Read Replies (1) of 8925
 
Scalping vs. Position Trading:

In my experience, technical trading skills for scalping and position trading is exactly the same. The only difference is in timeframe. I use the same techniques on a one-minute chart as I do on a weekly chart. The principles of market mechanics do not change. What the trader needs is volume and volatility.

The market determines for us what we are required to do. If there is a good trend going on in a daily chart, then it is suitable to position trading. If there isn't one, then intraday scalping is most likely to be profitable. The setups, risk/money management parameters, etc. are exactly the same.

That said, some people prefer not to have exposure overnight, regardless of the daily trend and I'm sure everyone can understand why, as preserving capital is the most important job of a trader.

Teresa
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