Position trading strategy.
About Position trading
Position trading is a popular trading strategy where a trader holds a position for a long period of time, usually months or years, ignoring minor price fluctuations in favor of succeeding from long-term trends. Position traders tend to use fundamental analysis to evaluate potential price trends within the markets, but also take into considerations other factors such as market trends and historical patterns.
Pros of position trading strategy
Large possibilities
Position trading allows traders to use high leverage, as the possibility of a mistake is smaller than in conventional trading.
Less stress
One of the biggest advantages of position trading is that positions don't have to be checked on a daily basis.
Cons of position trading strategy
Significant loss
Position traders tend to ignore minor fluctuations that can become full trend reversals and result in significant losses.
Swap
He swap is a commission paid to the broker. If the position is open for a long period of time, the swaps can accumulate a large amount.
What is the best trading strategy?
When it comes to trading strategies, they can all perform well under specific market conditions; the best trading strategy is a subjective matter. However, it’s recommended to pick a trading strategy based on your personality type, level of discipline, available capital, risk tolerance and availability.
Let's upgrade your trading skills!
Go on learning to evolve as a trader.
Made on
Tilda