Data Analytics - Kansas City - StockMarket

Multiple Positions vs Fewer Trades: Balancing Risk, Opportunities & Trading Goals for Success

Hello. I understand smaller queries should be posted in the weekly lounge, however I think this will result in more of a discussion, hence a larger post. I have seen a wide range of strategies on this sub, from people taking from 1 all the way up to 20 trades per day, and as I have started paper trading myself, was wondering the advantages / disadvantages of these different approaches. Firstly, why would having multiple positions open at once be favourable? Is it the fact that they all have RS/RW so you are less likely to be dragged by the sector or the market due to a spread over many assets? I was thinking an advantage of having less positions open means that if a large unexpected news story hits (war, invasion etc.) it is easier to manage the positions accordingly. Finally, I was wondering if the better traders here always have a long short bias. On a choppier day would you be comfortable having equal longs and shorts as opposed to having a bias in one direction?

submitted by /u/Nice_Warthog

[link] [comments]