Positional Trading: Building Wealth with Patience
Positional trading is a long-term investment strategy where traders buy and hold financial assets for a significant period of time, often months or years. The goal is to profit from major market trends or shifts, rather than short-term market volatility.
Here are some key aspects of positional trading:
Trend following
Positional traders look for trends in the market and hold their positions until the trend peaks or reaches a desired exit level.
Technical and fundamental analysis
Positional traders use technical analysis to identify entry and exit points, and fundamental analysis to determine the outcome of an event.
Patience and discipline
Positional trading requires patience and discipline to resist impulsive decisions and hold positions through price fluctuations.
Capital requirements
Positional trading requires substantial capital to withstand market fluctuations and maintain a diversified portfolio.
Risk
Positional trading can be risky because it exposes traders to long-term market risks and requires more capital that is locked in for a longer time.
Positional trading is commonly used in equity markets, but it can also be applied to commodities, currencies, and other financial instruments.
PGDM in finance, having 5+ experience in Equity, commodities , forex analysis and trading.
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