Trading the Long Side vs. the Short Side

[Andrew from Jersey 18]

Good morning BBT, 

Something that I am interested in discussing is what people's opinions are about trading either the long side or the short side of the markets. I'm interested in the difference in strategies for both day trading (short-term), and swing trading (long-term). I find that I am biased to play the long side for short-term trades, and then the short side for more longer-term moves. My father was a stock broker and trader during the 80's and 90's, and he was always a short side kind of guy, constantly paying monthly premiums to hold position, but seriously cashing in when the price broke and fell hard, with profit well exceeding his total expenses paid on the position. He was very much influenced by the theory that fear is a more potent emotion than greed, and that while not every fearful person gets greedy, every greedy person does experience fear. 

I'd also like to see a discussing about the psychology behind this. What is the psychology of trading the long side during short-term moves, or during long term moves? Vice versa, what is the thought process of someone that takes the short-side during the short-term, or long-term. 

What does everyone else think?

 

- Andrew from Jersey aka Tracksuit Trader 

[jonosg 11]

For anything holding overnight or longer My strategies are all Long. Intraday I’ve no real bias the strategies I use work both ways. I think that’s primarily because I was using the markets to grow my savings from 2009 onwards as the banks were paying effectively 0 interest. My strategies were dividend, buy and hold and selling premium (writing covered calls at the start the options month) sector etf’s , blue chips etc. All very hands off whilst working, most of the time away from home. My plan is to start swing trading properly over the next 6 months or so. I definitely wouldn’t be comfortable holding short positions overnight at the moment, mainly because of the uncertainty and I’ve never done it before