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Author Topic: Trading: Quick Trades vs. Lengthier Trades  (Read 763 times)
BlumpkinFairy (OP)
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March 17, 2015, 01:09:57 AM
 #1

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.
chennan
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March 17, 2015, 06:48:46 AM
 #2

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 (OP)
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March 17, 2015, 09:24:47 AM
 #3

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 Smiley.
Miracal
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March 17, 2015, 09:27:10 AM
 #4

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 (OP)
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March 18, 2015, 09:11:51 AM
 #5

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.
zetaray
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March 18, 2015, 09:35:19 AM
 #6

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

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lihuajkl
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March 18, 2015, 09:47:26 AM
 #7

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.
BlumpkinFairy (OP)
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March 18, 2015, 11:51:23 AM
 #8

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.
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