Trading: Quick Trades vs. Lengthier Trades

BlumpkinFairy

newbie

Activity: 25

Merit: 0

Quote from: lihuajkl on March 18, 2015, 04:47:26 AM

Quote from: BlumpkinFairy on March 18, 2015, 04:11:51 AM

Quote from: Miracal on March 17, 2015, 04:27:10 AM

Why do you like to trade short position? Why not go to long trading? Keep in mind that the price of promising coins will always go up from the long term. If we take the long trades, we make a loss, just leave there and still have a chance to make a profit when the price is increasing in the future. But for the short, it is more risky. I would recommend that taking short trades is better for a day or two!

Well for one thing long positions are more interest heavy than short positions as you know. It's pretty cheap to keep a short position open for a long time.

If you want to go long position, you would better go without leverage. So you don't have the burden of paying interest, just believe the potential of that chosen coins and hold for a chunk of profit.

I think this is a good idea.

lihuajkl

legendary

Activity: 1596

Merit: 1000

Quote from: BlumpkinFairy on March 18, 2015, 04:11:51 AM

Quote from: Miracal on March 17, 2015, 04:27:10 AM

Why do you like to trade short position? Why not go to long trading? Keep in mind that the price of promising coins will always go up from the long term. If we take the long trades, we make a loss, just leave there and still have a chance to make a profit when the price is increasing in the future. But for the short, it is more risky. I would recommend that taking short trades is better for a day or two!

Well for one thing long positions are more interest heavy than short positions as you know. It's pretty cheap to keep a short position open for a long time.

If you want to go long position, you would better go without leverage. So you don't have the burden of paying interest, just believe the potential of that chosen coins and hold for a chunk of profit.

zetaray

hero member

Activity: 658

Merit: 500

Longer trades involves more risks. Shorter trades can limit your losses. It depends on how good you are at speculating trends.

BlumpkinFairy

newbie

Activity: 25

Merit: 0

Quote from: Miracal on March 17, 2015, 04:27:10 AM

Why do you like to trade short position? Why not go to long trading? Keep in mind that the price of promising coins will always go up from the long term. If we take the long trades, we make a loss, just leave there and still have a chance to make a profit when the price is increasing in the future. But for the short, it is more risky. I would recommend that taking short trades is better for a day or two!

Well for one thing long positions are more interest heavy than short positions as you know. It's pretty cheap to keep a short position open for a long time.

Miracal

sr. member

Activity: 350

Merit: 250

Why do you like to trade short position? Why not go to long trading? Keep in mind that the price of promising coins will always go up from the long term. If we take the long trades, we make a loss, just leave there and still have a chance to make a profit when the price is increasing in the future. But for the short, it is more risky. I would recommend that taking short trades is better for a day or two!

BlumpkinFairy

newbie

Activity: 25

Merit: 0

I was thinking specifically wrt to fees and interest. It's just that I had been doing a few quick shorts and it occurred to me that perhaps I was throwing away money on fees by not making longer-term trades instead. But I hear you, you're saying that you're gonna do what the market calls for rather than what is lighter on the wallet

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chennan

legendary

Activity: 1316

Merit: 1004

It depends on different of circumstance. If the market is under the down trend line, we could consider the second type of trades.
If the market is fluctuating up and down, maybe you can consider the first type of trades.

BlumpkinFairy

newbie

Activity: 25

Merit: 0

Scenario 1: Take frequent short positions for a day or two and pay less interest but fee/profit ratio is higher.

Scenario 2: Take 1 lengthy short position and pay more interest (as we're borrowing for a longer time) but fee/profit ratio is lower.

Let's assume that in both scenarios we make profitable trades.

So which approach has a higher EV?

I suppose you may answer that it depends on what the interest rate you're paying is vs. the fees your exchange charges, but beyond that if someone could shed some light on this that would be cool.

Topic: Trading: Quick Trades vs. Lengthier Trades (Read 782 times)