Positional Trading: Step-By-Step Guide For Beginners
You must have encountered positional trading at some point in your share market trading career. Positional trading might be the smart way of investing in the stock market but find the intraday movements too rapid while not wanting to lock your money up in long-term investments.

Positional trading is indeed a phase of intraday trading that is more advanced and allows you to hold your positions throughout a day, a week, or even a month. You don't have to work as a trader full-time or spend the entire day hooked to a screen like an intraday broker. 

To make money, a trading position is kept for a long time (often weeks or months) in position trading. In Algo Trading App India, a trader typically has a long-term outlook and maintains the position despite short-term fluctuations.

The positions could belong (purchase the asset first) and be short, for instance (selling the asset first). Traders typically start trading positions using long-term charts (weekly, monthly) in this style of trading, which is also known as trend following.

Positional Trading: General Idea

Positional trading is when a trader buys a security, expecting its worth to rise in the long run. This type of trader is less disturbed by short-term price fluctuations and the day's news unless they alter the broker's protracted outlook on the positional significance in the stock market.

The top 25 hedge fund managers who earned the most money in 2017 used the positional trading approach to create $17 billion in earnings.

There are several things to be ready for if you decide long-term trading is your style on an options trading app. The market may inevitably oppose your trade at a certain point when taking positions for a lengthy time. It would help if you were adamantly committed to following the regulations in this circumstance.

Position traders keep their positions open for a long time, hoping the capital value will rise. Position trading is a smart way of investing in the stock market and typically lasts from many weeks to months. Only inactive or buy-and-hold investors maintain their holdings for longer than positional traders.

Read More: How To Decide Which Trading Bot To Trade?

Positional Trading Strategies: 

Although there are no pre-defined strategies for position brokers to employ, a broker can choose his bets based on their level of expertise. Technical analysis is often a strength for traders. Traders frequently undertake the additional effort to master financial ratios and technical assessment to increase the reliability of their insight considerably.

Some traders operate on the opposite end of the day trading spectrum. They typically try to consider the market's wider perspective, avoid being swayed by short-term swings, and maintain confidence that the marketplace will eventually rectify itself.

They prioritize an asset's long-term performance higher through an options trading app. Instead of trying to capitalize on price swings, they observe a tendency to develop. Position traders are more like investors than other sorts of traders in nature.

1) Technical Strategy: 

These graphs are used in a technical method to identify the commodity price long-term trend of options trading apps. Trades start when the asset price exhibits a long-term trend behavior. It typically analyses the asset's price, turnover, and relative importance. This trade is entirely price-driven and does not consider any fundamental variables.

2) Fundamental Strategy:

A substantial strategy focuses more on the structural variables influencing an asset's value. The strategy solely considers substantive factors and seeks a gradual transition in the fundamentals of the corporate environment. When using the intrinsic technique, an investor can operate with considerably better confidence than only scientific analysis.

3) Techno-Fundamental Strategy

A fundamental techno approach makes investment decisions based on technological and structural analysis. Charts are used to examine price behavior and confirm foundations to monitor protracted qualitative development. The trade is executed if the price reflects the fundamental shift.

Benefits Of Positional Trading

Positional trading can be a superb Algo Trading India technique when a trader employs the aforementioned positional trading tactics with the appropriate experience and understanding. The opportunity to employ several trading philosophies is the main advantage of positional trading.

-> Due to the long-term component, positional trading is less volatile than day trading and swing trading.

-> Positional trading employs technical and fundamental analysis, strengthening the strategy's robustness.

-> The majority of large asset movements occur overnight, and position trading is used to profit from them.

-> Compared with day or swing trading, position trading needs less attention from the investor.

-> Having access to leverage is advantageous in leveraged trading since it allows for using the commodity as security.


Investing is a high-level-risk pursuit; thus, traders must evaluate and educate themselves before seeing considerable market success. Additionally, position trading is similar. One must invest a lot of time in monitoring, learning, and interpreting market fluctuations to study positional trading. Analyzing historical data and identifying patterns is the greatest approach to learning spot trading. It becomes quite simple to design and carry out investment strategies while adhering to basic risk management guidelines once a trader comprehends market patterns.


Positional Trading: Step-By-Step Guide For Beginners
SpeedBot Team 23 November, 2022
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