Episode #8 - Adding to positions

Week 29 - 2025

The previous Episode [#7 - Timeframes]

In the Dutch book Traden doe je zo by Chris Janssens and Berry Vrolijk, the authors argue that swing trading is essentially easier than day trading—and I agree, for two reasons. First, swing trading gives you more time to think through your buying and selling decisions. Second, the price fluctuations in day trading tend to be more aggressive and erratic than in swing trading. According to the authors, it’s better to start with swing trading and, once you've mastered that, consider moving on to faster strategies.

That said, I’m convinced a trader’s personality plays a crucial role in this choice. I’ve seriously attempted day trading multiple times, but I’m simply not built for it. It feels too fast, too tense—and I suspect that algorithmic strategies are becoming too dominant in that space. Swing trading, by contrast, involves more uncertainty: company updates, geopolitical events, or sudden market shifts can all influence price action. These are factors that often challenge AI systems, which tend to be rigid and reactive. In such an environment, the flexible swing trader may actually have the edge.

In the previous episode [#7 – Timeframes], I discussed the various timeframe options available to swing traders. I’ve personally traded everything from 5-minute to daily charts, but I suspect most swing traders settle somewhere between the 1-hour and daily charts. That said, if you’re trading based on daily charts, it’s worth asking whether you still fall under the swing trading label—or whether you’re edging toward position trading.

For clarity’s sake, let’s say that swing traders generally operate on 1-hour to 4-hour charts. Those using the 1-hour chart typically hold trades for a few days, while 4-hour chart traders may stretch their positions over a few weeks.

Ok, enough about the last episode. Let’s go to throwing money at positions.