What is positional trading?
Positional trading is a type of trading where you buy and hold stocks (or any financial asset) for a longer period of time—usually weeks, months, or even years—with the aim of making a profit from big price movements.
Unlike intraday trading, where traders buy and sell on the same day, positional traders are more patient.
They believe that the price of a stock will go up (or down) over time and hold on to their position until they reach their target.
Key Features of Positional Trading:
- Focuses on long-term trends, not daily price movements.
- Involves less stress and screen time compared to intraday trading.
- Traders often use technical and fundamental analysis to make decisions.
- It’s suitable for people who can’t watch the market all day but want to grow their money gradually.
Example:
Suppose you buy a stock at ₹200 because you believe its value will rise based on company growth. If after 3 months it reaches ₹280, you sell it and make a profit of ₹80 per share. That’s positional trading.
Good For:
- Working professionals
- Part-time traders
- Long-term wealth builders
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