Zeev's Turnips Patch-No Politics (ZEEV)

[Paul A]

Sandy- great post! One thing that caught my attention was your preference to day trade rather then take positions..

I spent alot of time over the last few years (and still to this day) trying to make a convincing argument for day trading as opposed to position trading say with a 3-5 day avg. hold time. The only difference I have found was that day trading requires a special personality.. All the 'demons' like Ego, Fear, shoulda/coulda/woulda all play out in seconds and it requires a special person to take lumps/make a killing, and not walk into the next trade carrying the scars from the prior trades.. By playing my positions out over several days I find it easier to not let these feelings get in the way of my plans and I sleep much better at night.

Obviously- like you said.. each person has to determine what works best for them.. but actually- what I really wanted to say was that I didnt entirely agree that its easier to speculate on minutes/hours rather than days. For example- if I decide to play CSCO the week of earnings release, I can position myself 5 days ahead of the report speculating where shorts would cover and I can average into the position if my initial entry is poor. Same as day trading- Im planning a position, but I give myself more flexability to ride the voliatility with the intentions of ultimately profiting from the tug of war..

As for averaging down.. Zeevs catchy phrase 'plan the play/play the plan' applies here... Most of my positions (even day trades) already have averaging up or down as part of the plan.. I think it can be extremely valuable and wouldnt write off entirely. Again- it comes back to those emotional demons. You average down in an attempt to have a more realistic exit price given the trade is going against you, but the main thing obviously is to plan for a failed trade and take those lumps when the plan dosnt play out.. Being a 'stuck-holder' is someones choice, but its really someones inability to take the lose and admit defeat rather then the actual averaging down thats to blame : )

Hope you dont mind- I bookmarked you! I love reading your posts in the short time you have been here.. A definate plus for the board to have you here if I may say so!