What is Position Trading
Position Trading is a long term investing approach which follows the strategy of buy-and-hold for months or even years.
position trading vs swing trading
Swing traders capitalize on short-term price swings, lasting from days to weeks. While position traders hold positions for much longer, sometimes for months or years.
positional trading vs long term investing
investing based on fundamentals for long term holding to accumulate shares when price down, but trading based on technical pattern with specific target and stop loss.
Difference Between Intraday and Positional Trading
Benefits of Intraday Trading:-
- Traders might generate large profits by aiming for a tiny target for a short period of time.
- Intraday employs this type of transaction frequently since the trader’s volume is significant, allowing the trader to simply position a trade.
- In contrast to positional trading, intraday trading has cheap brokerage.
- Intraday trading allows a trader to make money faster.
- A trader can get started with a small investment.
Benefits of Positional Trading:-
- When compared to intra-day trading, it is less dangerous.
- They have the ability to generate higher percentage returns.
- They provide a variety of strategic options.
Risks of Intraday Trading:-
- Before trading intraday, a trader requires proper instruction and knowledge.
- Intraday trading takes a long time because of the short length of the day. It is quite difficult to manage if you work full-time.
- Intraday trading may be an extremely stressful experience because the focus is required.
- Intraday trading is extremely risky; even a minor error can result in a significant loss.
Risks of Position Trading Strategy:-
- Traders must conduct an extensive study before investing because the trader intends to invest for a long time.
- Traders must wait a long time to reap the benefits of their investments.
- If the trader invested in the wrong share, he must reconsider his investment. And it will cause a trader to be stressed.
Intraday Trading Time-Frame:-
This trading requires a consistent watch and sharp eyes to get opportunities as soon as they get visible on the screen. While speaking about day trading, it is clear that any investor in this type of trading needs to square off the position on that day of buying and selling shares.
BSE and NSE function between 9:15 am and 3:30 pm. This means you need to be active in the market starting from the time the market opens.
Positional Trading Time-Frame:-
The ideal time to trade in the Indian stock market would be from 9:15 am to 3:30 pm for any form of trading. The best time frame for positional trading is when you can try to open positions when a strong bullish trend is observed. You could place the order when the trends seem to be on an uptrend. You could also place orders aftermarket and even during market hours.