Description: Position traders are trend followers. They identify a trend and an investment that will benefit from it, then buy and hold the investment until the trend peaks. This is different to a Buy & Hold strategy where the investor holds the investment for even longer and not because of a trend.
Requirements: Position traders may use technical analysis (e.g. swing high, swing lows, ranges, RSI), fundamental analysis, or a combination of both to make their trading decisions. They also rely on macroeconomic factors, general market trends, and historical price patterns to select investments which they believe are about to go higher.
The successful position trader needs to identify the right entry and exit prices in advance and control risk using stop-loss orders.
Position trading is seen as more ideal for a bull market than a bear or flat market.
Time Frame: Positions are held for months to years.
On BROKSTOCK: To assist you with your Positions Trading, BROKSTOCK provides news on market trends and macroeconomic factors which can be found under BROKSTOCK’s Key Market Sectors, Market Overview and Markets.
For controlling risk, BROKSTOCK provides a stop-loss feature in your trade setup, where you select your order type.
Candle charts showing the highest & lowest price point in the selected time period can be found under the instrument’s Invest tab.
BROKSTOCK doesn’t currently provide drawing tools.