What Is a Comparison Between Day Trading vs. Position Trading Stocks?

Learn Differences in Styles, Costs, and Profits

“Day Trading” is the most widely talked about Trading Style for Retail Traders. However, it is the least profitable of all the short-term Trading Styles. This is a little known fact that no one ever tells Retail Traders when they start to learn to trade, because so many vendors make so much money from Retail Day Traders. Position Style Trading is the least used, yet most profitable Trading Style for more Market Conditions than other styles. Below is a chart example of a Position Trade.

The entry by most Retail Traders would have been made as the stock completed its bottom around 62. In just over 3 months the total gained is approximately 22 points for one trade, so trading costs are minimal in comparison to profits.

Not a bad return for a few hours a week effort, a few dollars in broker fees, and a scant $30 a month for a charting program. Well worth the effort, tool costs, and your time. That equates to $22,000.00 on a 1,000 share lot trade.

Position Trading is lucrative as stocks move out of bottoms, and begin Platform building or Moderately Trending patterns.

The second chart example is of a Position Trade still underway with continued upside potential. The entry again was at the completion of the bottom.

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Trade Wisely,

Martha Stokes CMT

TechniTrader technical analysis using TC2000 charts, courtesy of Worden Bros.

Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses

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