Day trading or taking positions.

Anshul asks:
sudarshan bhaiyya i still feel in todays world of tablet computers also,it is positional trading which rakes in the real money.Intraday trading just keeps some chutta paisa going and keeps u engrossed. Yes in positional calls some times gap openings play havoc but partially dey can be hedged by buying at money options. Please give ur views

My Notes:
I do a lot of testing on trading rules. It is a hobby as well as a business. My conclusions are:

1. Swing Trades make the most money. These are trades with 1 to 5 days of time horzon.

2. Day trades are useful for keeping the trader occupied. These trades require significant trading skill. At least on automated systems, day trading makes less money than swing trades.

3. Position trades can be defined as trades with time frames of weeks to months. These trades make the most money but require proper stock selection. Since traders cannot ever know in advance which stocks will move the most, position trades are best suited for baskets of stocks / futures. You trade a lot of them and some will work out in a spectacular fashion.