TechniTrader – Position Trading

Position Trading A stock is held to a target price which is higher than the current price. Position trading is a more flexible trading style than any other.-Trading styles are defined in terms of time commitment, capital base, and entry- and exit strategies. This makes it an ideal choice for beginners or those with limited time to trade.

Hold Time: Several weeks to a couple of months

Market Analysis, Technical Skill Level: beginner to  Intermediate

Fundamental Analysis: It is important to check the basics. 

Tolerance for risk: Moderate to high.

Capital Base: This can be as low as a few thousand, to get you started.

Time Commitment: A few hour per week Part-Time trading

Temperament: Likes to trade but doesn’t have the time.

Decisions for this style of trading are made using a combination of technical analysis, also known as study of stock charts, and fundamental analysis, aka research of the company’s strength. For a longer period of time, a solid trendline is required and better fundamentals. Because the emphasis is on a established trend that is supported by a fairly successful company, there is less risk than with the shorter time.-Swing and day trading are two terms that can be used.

Position Trading can be completed in a matter of hours per week. You will need to manage your positions, analyze the market and determine the basic principles and trading opportunities, as well as place orders. Because the goal is to invest in stocks with a lower price for a longer period of time, it can be done even if you have less money. The longer time you hold stocks can result in higher profits and less effort. Position Trading is a great way of building a capital base to trade or invest. This is an excellent trading method for beginners or those with a small capital base.

Here is an example of a trade in position. The entry is from the bottom and the exit is at strong resistance for a hold of approximately 3 months.

Get it now TechniTrader – Position Trading

For Position TradingLearn these things:

• Analysis of the Market Condition
• How to read stock charts and find the most trendlines patterns to enter and exit positions, as well as for reward-to-risk analysis.
• Analysis of key indicators for identifying accumulation by large institutional investors
• Which fundamental principles of a company should you focus on? What to look for?