Position Trading: An Introduction to Developing and Analyzing Efficient Strategies for Position Trading

by William Bahl

Position trading can often be a good way for position traders to make a long-term position on stocks and assets. Consequently, taking a long term position on an asset with all its seemingly great benefits also tends to have its own inherent risks. The trading strategy thus requires an in-depth knowledge of fundamental factors that can help influence prices over the long term, as well as a basic knowledge of technical timing models. The main risk of position trading is the impact of minor fluctuations and the fact that they are commonly ignored. In the process, they can turn into a total trend reversal, leading to a significant loss or drawdown when the trader is guilty of failing to monitor positions or putting safeguards in place to secure their capital. There are various trading techniques aside position trading namely; day, swing, scalping etc. Trades are engaged based on research which indicates that a stock could start to trend, or chart pattern breakouts, as well as technical indicators, signaling the potential beginning of a trend or that a trend is underway.

44 pages, Kindle Edition

Published December 4, 2019