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Positional trading is a sort of investment where people hold their stock positions for long-term (for weeks or months or a few years) with the belief that they will return great profits. This makes position trading more suitable for trading any sort of market.<br><br>It doesnu2019t indicate you donu2019t have any selling chance here. The positional trading consists of selling opportunities based on indicators of positional trading. They are determined on the basis of fundamental analysis.
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BULLISH INDIA WHAT IS POSITIONAL TRADING? WHAT ARE POSITIONAL TRADING INDICATORS? https://www.bullishindia.com/index.php
Positional trading is a sort of investment where people hold their stock positions for long-term (for weeks or months or a few years) with the belief that they will return great profits. This makes position trading more suitable for trading any sort of market. It doesn’t indicate you don’t have any selling chance here. The positional trading consists of selling opportunities based on indicators of positional trading. They are determined on the basis of fundamental analysis.
Positional trading is not suitable for casual investors as it needs comprehensive knowledge to study trends. If you think, you’ve understood the topic, and then you should not ignore positional trading, as you can make huge profits. The majority of the strategies used in position trading ensure a precise amount of profits. Though, keeping the level of risk is much more important than making profits. As you trade with a huge amount of money, making a little bit of return is also very significant.
Benefits of Positional Trading: • A positional trader is winning even with a low rate of success (30-35%). • A limit to the number of transaction reduces the brokerage, shipping and transaction taxes. • Profits of positional trader are into short term capital earnings and are taxed. • A positional trader keeps his positions small to cut the overnight market risk and loss. • A positional trader has to sustain very low data costs. • A positional trader uses trading systems to trade to have little or no pressure.
What Are Technical Indicators for Positional Trading? • Exponential Moving Average (EMA) • Relative Strength Index (RSI)
Exponential Moving Average (EMA): The long-term positional trading strategy uses 200-Day EMA, 50-Day EMA to decide the fortune of the stock holding. These exponential moving averages are recognized as the best averages to evaluate a positional holding. Just by calculating the moving average crossover, you can be aware of the market trend for that stock.
Relative Strength Index (RSI) The RSI indicator is used to determine the appropriate time for profit booking. Buying when the stock price closes over the 200-Day EMA would be the correct approach. Since 200-Day EMA is considered the most effective positional trading indicator, it finds out the direction of the trend.
IT IS ESSENTIAL TO HAVE A DETAILED UNDERSTANDING OF THE TRENDS BEFORE YOU MOVE FURTHER. To be a successful positional trader, trading requires a lot 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 use the right positional trading indicator at the right time you can consider yourself blessed because you have all you need to trade long-term. Nothing on this planet can make wealth like holding a long-term trend and use the power of compounding. footer
To wrap up the above discussion, positional trading is the easiest form of stock market trading. While several traders find it difficult as it seems. The few things positional traders should always keep in mind is to search the right stock, analyze trends through study, find the entry and exit point, and last is to keep a regular track on stock price activities.If you are looking for the best intraday trading tips Bullish India will help you to gain maximum profit with minimum risk by providing genuine intraday tips, multibagger stocks, and NIFTY calls. You can also download the Bullish India mobile app from the Google Play Store and can get free market alerts.
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