Category: 1. Position Trading

Positional trading is less risky than swing trading and day trading because there is a long-term element involved Positional trading uses fundamental as well as technical analysis, making the strategy more foolproof Most of the big moves in assets happen overnight, and one can capture these moves using positional trading Positional trading requires less continuous involvement of the…

Pullbacks are short moments of market reconciliation that happens when the market is rising upward. Traders look for pullbacks in their trading strategies to plan entry. The policy is to buy low and sell high. So, when the price dips during pullback, traders enter the market. Now, they need to eliminate chances of trend reversal when…

50-days and 200-days EMA’s are considered best suited moving averages for positional trading strategy.  Traders look for trading opportunities when the moving average lines cross each other. When the fast moving average crosses the slow MA line from below the point of intersection is called the golden cross. It indicates a bull market going forward.…

In breakout trading strategy traders wait for the price line to cross the support or resistance level.  When the overhead resistance is broken, the trader enters a long position. Conversely, he enters a short position when the price breaks out the support line.  If you are good at identifying periodical support and resistance levels, this…

Support and resistance lines allow traders to visualise the range within which the asset price is moving. Support creates a lower limit of price, and resistance constitutes the upper level. Here is how to identify support and resistance levels for an asset price. – Historical data is a reliable option to identify support and resistance…

Position trading is a longer-term trading strategy where a trader purposefully sits in a position for several weeks or even months, waiting for a big price move. Source: SRTrader.com. This is a different trading philosophy to a day trader who aims to capture smaller movements by buying and selling within the same day.

A position trader buys an investment for the long term in the expectation that it will appreciate in value. This type of trader is less concerned with short-term fluctuations in price and the news of the day unless they alter the trader’s long term view of the position. Position traders might be seen as the…