When it comes to trading in the stock markets, every trader needs to have a strategy laid out before taking the plunge. Trading strategies are what differentiate good traders and bad traders.
In trading, you must have heard terms such as positional trading, intraday trading and swing trading, buy today sell tomorrow (BTST), among others.
But did you ever think about how these trading strategy works? Or how it could help you select the best stocks to trade tomorrow?
Today, let's understand positional trading.
Positional trading is a long-term trading strategy in the stock market. It is completely different from intraday trading because here, you have to hold your positions for a longer period.
You don't have to be a full-time trader and spend the entire day looking at the screen like an intraday trader.
Instead, positional trading has an advantage over intraday trading as in the long run, we all know that the stocks markets will only go up.
Positional trading entails using technical and fundamental analysis to assess possible fluctuating market price tendencies.
Some of the popular known positional trading strategies include breakout trading strategy, support and resistance, pullback strategy, retracement strategy and range trading.
A critical aspect of trading in the markets is having the right trading mindset.
Professional traders out there know that having the right mindset while trading makes all the difference between making profits or losses.
Since you fancy trading, check out our guide on how to find the best intraday stocks for today.
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