Position Trader Course 2009 by TechniTrader
Position Traders hold a stock through mild retracements and periods of consolidation until a predetermined exit price is reached. This exit price is selected based upon resistance that would cause the stock to retrace steeply or to move sideways for many months. Position traders usually have much higher points gained for each trade, but they are also holding the stock for several weeks to months. This is a slower paced style of trading that is not as time-demanding as Swing Trading.
Position trading is the ideal trading style for beginners as it is a forgiving style of trading. If you make a mistake on your entry, you can simply hold through the mild retracement. It is also ideal for low capital base traders who can’t afford to buy expensive stocks. Many great bargains can be found when stocks form bottoms and the position trader can buy these stocks at very low prices and hold while the stock climbs. In this way, the beginner and the low capital base trader can increase their capital with lower risk. Position trading is far less risky than options. We recommend that if you are a beginner, that you start with position trading and then once you are consistently successful you can start trading options. Options are a do or die situation, so while you are learning it is wise to choose a style that will tolerate some mistakes without costing you your life savings.
Position trading is also the best choice for people with very busy lives. Position trading can be done with as little as one or two hours per week because you are holding the stock for much longer periods of time. You don’t have to study charts each night and you enter only a few stocks each month.
Position trading can be highly lucrative and works in all kinds of market conditions. It has been an especially strong trading style during the choppy sideways markets of recent years.
If you are a beginner, a low capital base trader, or a very busy person who still would like to short term trade for extra income each month, then Position Trading is the style of trading for your busy life.
Technical Analysis Day trading
How to understand about technical analysis: Learn about technical analysis
In finance, technical analysis is an analysis methodology for forecasting the direction of prices through the study of past market data, primarily price and volume.
Behavioral economics and quantitative analysis use many of the same tools of technical analysis, which,
being an aspect of active management, stands in contradiction to much of modern portfolio theory.
The efficacy of both technical and fundamental analysis is disputed by the efficient-market hypothesis, which states that stock market prices are essentially unpredictable.