intraday trading

What is Positional Trading? Best technical Indicators for Positional Trading

Positional trading is another form of investing where people hold their positions long-term with the expectation they will become profitable. Useful is subjective but there are general guidelines you can use when seeking out best indicators for your position trading. Everyone wants to earn huge profits by stock trading. However, very few people succeed in it. What happens to others? Why are they not able to hit the Bull’s Eye?

The answer is simple, they don’t remain consistent with one strategy and keeps hopping. The traders follow several stock trading experts and try to use the tips and tricks given by everyone.

It is pronounced that they end up with making marginal profits and sometimes, loss!

Experts say that one who follows a fundamental strategy such as positional trading and works on it gets a remarkable success consistently.

2 Days Free Trial for Intraday Tips

The blog talks about the salient aspects of positional trading.

What is Position Trading?

Before we move further, let’s understand what positional trading is?

It involves holding a stock for a few days, weeks or months; sometimes, a few years. Yes, patience the key here.

The concept is not very much different from other long-term investment strategies where you remain invested with the expectation of reaping good profits.

It doesn’t mean you don’t have any selling opportunity here. The positional trading also includes selling opportunities based on positional trading indicators. They are derived based on fundamental analysis. Hence, they are accurate.

What are positional trading indicators and how are they useful?

The long-term positional trading strategy uses 200-Day EMA, 50-Day EMA to decide the fate of the stock holding.

These exponential moving averages are considered the best averages to evaluate a positional holding. Just by checking the moving average crossover, you can understand the overall market trend for that stock.

When the 50-Day EMA crosses the 200-Day EMA, it means the market is bullish (the Golden Cross).

The reverse indicates a bearish market (the Death Cross).

The third indicator, the RSI indicator is used to determine the appropriate time for profit booking.

Buying when the stock price closes above the 200-Day EMA would be the right strategy. Since 200-Day EMA is considered the most potent positional trading indicator, it determines the direction of the trend.

It is essential to have a thorough understanding of the trends before you move further.

When the positional trading strategy is used, the chances of reaping profit increase phenomenally. It is a time-tested strategy that always works.

However, it is essential to have a long-term perspective, a lot of patience, and the capability of ignoring short-term market turmoil.

Nothing can produce wealth other than having a long-term perspective and the power of compounding.

Download A1 Intraday Tips Mobile App

If you are looking for the best intraday trading tips A1 Intraday Tips will help you to gain maximum profit with minimum risk by providing the free intraday tips. For Free Trial you can register here to avail our Free Intraday Tips for 2 days. You can also download A1 Intraday Tips mobile app here. For more information call us at 07506090788 / 07600797534.

Also Read:

Which is the best indicator for intraday trading?

What are the best indicators for swing trading?

intraday trading

How do I Use EMA for Intraday?

Helpful Tips for EMA Intraday Trading

If we consider the long-term delivery trading like a cricket test match, then the intraday trading is like 20-20 match. Yes, it is a fast game where you have very little time to decide.

Quick reflexes and fast reasoning ability are two fundamental characteristics that make the intraday trading successful.

An intraday trader has to possess a clear understanding of how a stock is trending and when the things turn worse?

To have a stronger grip over the subject; Exponential Moving Average or EMA is a useful way to gauge the market trend.

Since it is a chart, anybody can scan it quickly and understand quickly. When you look at EMA, no further analysis is needed. It gives to-the-point information cleanly and precisely.

Since timing is crucial in the intraday trading, EMA helps in quick actions.

To long or short the position, that is the question

When you have EMA as the reference point, you know what side of the market you have been trading.

When the stock trades below the EMA, certainly it is the time to short the position.

If it trades higher than the EMA, then entering long is always better.

Nevertheless, these statements are quite basic. While deciding about trading long or short, you will undoubtedly consider several other aspects as well.

How to use EMA effectively for intraday trading?

As mentioned earlier, the EMA is one of the popular strategies in stock trading. In fact, some of the intraday traders do trading on the basis of EMA. It becomes their primary trading strategy.

Fundamentally, the intraday trading relies on choosing a short-term EMA and a long-term EMA. The trading decision depends on the relation of short-term and long-term EMA.

In the case of intraday trading, not only the decision should come fast, but it has to be accurate as well. There is no scope for holding the position. It has to be square-off by the end of the trading session.

Hence, following EMA is quite helpful. Whether you are a novice or a seasoned trader, the exponential moving average is useful for all.

When you trade into stocks, nobody can say that the strategy followed by him is the best in the world. It is impossible to make such a strategy because the market is incredibly volatile.

However, concepts like EMA can help in deciding in a much-informed manner rather than playing blind.

If you are thinking for free intraday tips A1 Intraday Tips is always there to help you to give you maximum profit by minimum risk by providing best intraday trading tips. For Free Trial you can register here to avail our Free Intraday Tips for 2 days. You can also download A1 Intraday Tips mobile app here. For more information call us at 07506090788 / 07600797534

Also Read:

How to Get Success by Using Intraday Tips in Day Trading?

Is it safe to do intraday trading?