WHAT IS POSITIONAL TRADING? WHAT ARE POSITIONAL TRADING INDICATORS?
Positional trading may be a kind of investment where people hold their stock positions for long-term (for weeks or months or a couple of years) with the assumption that they’re going to return great profits. This makes position trading more suitable for trading any kind of market.
The positional trading consists of selling opportunities supported indicators of positional trading. They’re determined on the idea of fundamental analysis.
Positional trading isn’t suitable for casual investors because it needs comprehensive knowledge to review trends. If you think that , you’ve understood the subject , then you ought to not ignore positional trading, as you’ll make huge profits. the bulk of the strategies utilized in position trading ensure a particular amount of profits. Though, keeping the extent of risk is far more important than making profits. As you trade with an enormous amount of cash , making a touch little bit of return is additionally very significant.
Benefits of Positional Trading:
A positional trader is winning even with a coffee rate of success (30-35%).
A limit to the amount of transaction reduces the brokerage, shipping and transaction taxes.
Profits of positional trader considers as short term capital earnings and are taxed.
A positional trader keeps his positions small to chop the overnight market risk and loss.
A positional trader has got to sustain very low data costs.
A positional trader uses trading systems to trade to possess little or no pressure.
What Are Technical Indicators for Positional Trading?
Exponential Moving Average (EMA): The long-term positional trading strategy uses 200-Day EMA, 50-Day EMA to make a decision the fortune of the stock holding. These exponential moving averages are recognized because the best averages to guage a positional holding. Just by calculating the moving average crossover, you’ll remember of the market trend for that stock.
Relative Strength Index (RSI): The RSI indicator is employed to work out the acceptable time for profit booking. Buying when the stock price closes over the 200-Day EMA would be the right approach. Since 200-Day EMA is taken into account the foremost effective positional trading indicator, it finds out the direction of the trend.
It is essential to possess an in depth understanding of the trends before you progress further.
When the positional trading approach is employed , the probabilities of creating a profit increase amazingly. it’s a time-tested approach that always works.
To be a successful positional trader, trading requires tons of patience and control and not gets panicked by short-term risky market moves. So, if you’re super-patient and calm, and if you employ the proper positional trading indicator at the proper time you’ll consider yourself blessed because you’ve got all you would like to trade long-term. Nothing on this planet can make wealth like holding a long-term trend and use the facility of compounding.
To conclude the above discussion, positional trading is that the easiest sort of stock exchange trading. While several traders find it difficult because it seems. The few things positional traders should confine mind is to look the proper stock, analyze trends through study, find the entry and exit point, and last is to stay a daily track on stock price activities.
TO UNDERSTAND THE PRICE ACTION TRADING STRATEGY FOR POSITIONAL TRADING :-
TO FIND MULTIBAGGER STOCKS FOR BECOMING MILLIONARE READ THIS