What,are,the,main,strategies,u business, insurance What are the main strategies used by a positional trader


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Positional trading is a trading method in which an investor purchases or sells stocks and hold their position for an extended period of time. It is a process of taking a position in an asset, expecting to make a huge profit by investing for long term. Generally, position traders not get stressed with minor price fluctuations or ups and downs. They always want to find out better profit-making opportunities and trends, which can last for months or years, most of the traders take profit making suggestions from stock tips providers or financial advisors. The main advantage of position trading is that an investor can take partial profits and add to their positions for as long as the trend lasts. Main strategies used by positional traders - 1. Breakout Strategy - Breakouts are one of the most common strategies used in the market to trade and make a profit. It is consist of determining a key price level and then purchasing and selling a stock as the price breaks that pre-decided level. The main aim is that if the price would break the predetermined level then it will continue to move in the same direction. The concept of a breakout strategy is so simple and it only needs a moderate understanding of support and resistance. Suppose when the market is trending higher and moving strongly in one direction, breakout trading will tell a trader that he never miss the move, so a trader can take investment decision accordingly. 2. Range trading strategy – Most of the times the markets tend to ‘range’ or move with no clear direction where no one can give an exact answer regarding market movement. In this case, traders look for a key price level that they can use to trade directly with an expectation of a bounce where “Bounce” consider as a small and quick chance to take a profit from low volume market activity. It is a strategy used by the traders to make a profit by finding out right time of buying and selling the stock. 3.Retracement strategy - When it comes to trending market most of the traders used either breakout or retracement. Retracements strategy is slightly difficult to execute, it requires high skills as the trader has to identify a clear direction for the price to move and they have to assure that the price will continue moving in.This is based on the fact that after each movement the price will temporarily reverse as many traders take their profits and mew investors trade in the opposite direction.Retracements are price reversals for short period of time that take place within a larger trend. The main point here is that these price changes are temporary, and do not indicate a change in the long-term trend. Profit earning is not so easy in the market, it needs a high level of market knowledge, a trader must clear all the terms related to the investment market. For a positive return, a trader can also refer stock trading tips, forex tips, binary option trading tips and market calls recommendations from experts of the market.

What,are,the,main,strategies,u

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