What is Positional Trading? Best technical Indicators for Positional Trading

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What is Positional Trading? Best technical
Indicators for Positional Trading

• Positional trading is another form of investing
  where people hold their positions long-term with
  the expectation they will become profitable.
• Useful is subjective but there are general
  guidelines you can use when seeking
  out best indicators for your position trading.

• Everyone wants to earn huge profits by stock
  trading.
• However, very few people succeed in it.
• What happens to others? Why are they not able to
  hit the Bulls Eye?

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• The answer is simple, they dont remain
  consistent with one strategy and keeps hopping.
  The traders follow several stock trading experts
  and try to use the tips and tricks given by
  everyone.
• It is pronounced that they end up with making
  marginal profits and sometimes, loss!
• Experts say that one who follows a fundamental
  strategy such as positional trading and works on
  it gets a remarkable success consistently.
• The blog talks about the salient aspects of
  positional trading.

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What is Position Trading?

• Before we move further, lets understand what
  positional trading is?
• It involves holding a stock for a few days, weeks
  or months sometimes, a few years. Yes, patience
  the key here.

• The concept is not very much different from other
  long-term investment strategies where you remain
  invested with the expectation of reaping good
  profits.
• It doesnt mean you dont have any selling
  opportunity here. The positional trading also
  includes selling opportunities based on
  positional trading indicators. They are derived
  based on fundamental analysis. Hence, they are
  accurate.

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What are positional trading indicators and how
are they useful?

• These exponential moving averages are considered
  the best averages to evaluate a positional
  holding. Just by checking the moving average
  crossover, you can understand the overall market
  trend for that stock.
• When the 50-Day EMA crosses the 200-Day EMA, it
  means the market is bullish (the Golden Cross).
• The reverse indicates a bearish market (the Death
  Cross).
• The third indicator, the RSI indicator is used to
  determine the appropriate time for profit
  booking.

• The long-term positional trading strategy uses
  200-Day EMA, 50-Day EMA to decide the fate of the
  stock holding.

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• Buying when the stock price closes above the
  200-Day EMA would be the right strategy. Since
  200-Day EMA is considered the most potent
  positional trading indicator, it determines the
  direction of the trend.
• It is essential to have a thorough understanding
  of the trends before you move further.
• When the positional trading strategy is used, the
  chances of reaping profit increase phenomenally.
  It is a time-tested strategy that always works.
• However, it is essential to have a long-term
  perspective, a lot of patience, and the
  capability of ignoring short-term market turmoil.
• Nothing can produce wealth other than having a
  long-term perspective and the power of
  compounding.

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