Position trader- a market participant who uses trading strategies, the time interval of which is from several days to several years.

In various sources, position traders are divided into medium-term (long-term) traders and long-flight “birds” - investors.

Let's look at how these market participants differ:

1. medium term trader. Transactions of these market participants last from 3 - 4 days to 2 - 3 weeks (sometimes a month). Their profits are based on trends that are displayed on H1, H4 and D1 charts;
2. short term investor. Such medium-term traders consider their positions from 1 - 1.5 weeks to 3 - 4 months. Their graphs are level W1-W2;
3. long term investor. A position trader of this level works with time intervals from 1 - 2 months to several years. They look at MN level graphs.

A position trader uses primarily fundamental analysis in his strategy. It takes into account economic (statistical) data and the political situation in the countries whose currencies or shares it considers for its trading. Position traders rarely use technical analysis, but they try not to completely abandon it.

Position trading has its pros and cons.

Advantages:

• Position trading does not require spending a lot of time at the computer. Unlike day trading, it is enough to study the situation on the market once or twice a day in order to decide whether to enter the market or stay out of the market.
• The influence of psychological factors in trading. A position trader experiences much less mental stress associated with trading on the stock exchange.
• The influence of daily news price fluctuations is practically not taken into account position traders, since the size of these fluctuations does not greatly affect the goals of long-term strategies.

Flaws:

• The duration of long-term investment activity does not allow one to quickly collect a sufficient amount of statistical data to test new trading strategies.
• The longer a trade is open, the harder it is to take into account changes happening in the world. These changes can greatly affect the outcome of long-term trades.
• Very large stop orders, which can reach several hundred points.

Fig.1 Example of a medium-term deal.

Using trading system signals for opening and closing transactions, you can achieve good results in trading.

To use the positional trading system you need:

1. Be independent from the opinions of the majority of traders. Have your own vision of the development of the situation on the market or stock exchange.
2. Have a good understanding of the fundamental analysis (economics, politics) of the instrument with which the position trader works.
3. Have sufficient self-control, patience and calm.
4. One of the important conditions is that a position trader must have a decent-sized deposit in order to withstand a possible drawdown of several hundred points.

If you use the opinions of others to trade without your own analysis of the market situation, if you are impatient, you do not have a lot of capital, you want to make a profit quickly, it does not matter to you what the economic and political situation is in the countries whose currencies and stocks you work with - then positional trading is not suitable for you.

Their energy level is almost zero. They open a passive position, after which they sit and look at her. The rules they follow are simple, and beginners quickly become aware of them: “don’t add to a losing position, only add to a winning one,” “don’t add to your losses,” “let your profits run.”

There is nothing difficult to understand here; these rules are known to anyone whose life plans include becoming a futures trader. Another thing is that only a few of the millions of people trading around the world will become real traders. Many position traders will tell you that winning positions are much more difficult to manage than losing ones. It is not so difficult to know when to exit a losing position by limiting the risk to a certain level, while a winning position contains some element of uncertainty.

The best position traders never enter a market without knowing exactly what they are looking for in a trade. Disciplined investors understand that placing stop loss orders is an important part of effective money management, but when the open position is in the black and, more importantly, when they open new positions in addition to the existing one, a new situation arises in terms of risk norms. management. It is difficult for novice traders to master all these subtleties, because the simplest thing is to open a position and hold it. It is much more difficult to achieve stability of results when the positions you open turn out to be positive over and over again.

Steve Helms is one of the top position traders in the Chicago markets. A native of North Carolina, Helms came to Chicago after graduating from Davidson University with the intention of establishing himself in the world of commodity trading, which he had been involved in in his home state. Upon arrival, he had fairly modest funds, but quickly rose to become one of the best position traders in agricultural futures on the CME. Although Helms later moved to the S&P 500 index futures market, he always had multiple positions open simultaneously in different markets. Helms became an excellent trader because of his ability to detach himself emotionally from trading.

I spent many hours talking with him, but I never managed to catch his eye. Helms's eyes constantly wandered along the quote lines on the Quatron scoreboard (Quotron is an electronic brokerage system. - Note). Helms' strength as a trader lay in his deep knowledge of the market and patience, coupled with a player's intuition. After opening a position, traders can no longer look at the market with the eyes of an outside observer. They have opinions, they formed them based on analysis and, what is much more important, they decided to test the effectiveness of the opinion by betting money on it.

What sets Helms and other successful position traders apart from the rest of the crowd is that when they enter a position after careful preparation, they remain as objective about the market as humanly possible. It's not just a matter of developing a methodology based on a combination of technical analysis and fundamentals, it also requires an intuitive understanding of the market. Many position traders, having developed a manageable trading plan that takes into account technical factors and relevant fundamentals, still refuse to implement it because their intuition does not allow them to do so. All successful traders will tell you that they prefer to refrain from taking obvious trades if they feel some kind of threat on an intuitive level.

Going back to Bing's point about leaving your brains at home when scalping, the opposite is true for a position trader. Your brain works in full force when a position is open. If you fall asleep at the wheel, you risk getting into an accident. Many good position traders have told me that after returning home they continue to track prices on the computer. They listen to television business news in the early morning and watch developments in foreign markets while we all sleep. They are on the lookout for news that could change the course of events in the market.

A good example is a speech by former Fed Chairman Alan Greenspan, in which he spoke of “irrational exuberance.” At the time of the speech, real euphoria reigned in the markets, the bulls ruled the show, the bears were nowhere to be seen, and the monetary policy of the authorities looked convincing. In short, the market was not ready for such words. Chairman Greenspan may have been correct in his long-term assessment of the situation, but the warning was too early. We saw how the market immediately reacted downwards, but the failure turned out to be short-lived. The market immediately turned around, after which we witnessed a bull run of truly epic proportions. The four-year rally lifted the S&P 500 and NASDAQ 100 stock indexes to record highs. A position trader tracking the reaction to the “reckless exuberance” realized that certain and far-reaching conclusions could be drawn from the market reaction. The truth was that the market did not want to go down. This should have been a clear warning to anyone considering selling. The best traders have it all figured out: when the Fed chairman tells you that stocks are a little overvalued, and then the market goes up, the bears better keep their heads down! Many astute traders made fortunes in the next two or three years because they recognized the unprecedented length of corporate earnings growth that was coming as a result of the year 2000 (Y2K) phenomenon.

Secrets of trading professionals. Methods used by professionals to successfully play in financial markets Burudzhyan Jack

Position traders

Position traders

Their energy level is almost zero. They open a passive position, after which they sit and look at her. The rules they follow are simple, and beginners quickly become aware of them: “don’t add to a losing position, only add to a winning one,” “don’t add to your losses,” “let your profits run.” There is nothing difficult to understand here; these rules are known to anyone whose life plans include becoming a futures trader. Another thing is that only a few of the millions of people trading around the world will become real traders. Many position traders will tell you that winning positions are much more difficult to manage than losing ones. It is not so difficult to know when to exit a losing position by limiting the risk to a certain level, while a winning position contains some element of uncertainty.

The best position traders never enter a market without knowing exactly what they are looking for in a trade. Disciplined investors understand that placing stop loss orders is an important part of effective money management, but when the open position is in the black and, more importantly, when they open new positions in addition to the existing one, a new situation arises in terms of risk norms. management. It is difficult for novice traders to master all these subtleties, because the simplest thing is to open a position and hold it. It is much more difficult to achieve stability of results when the positions you open turn out to be positive over and over again.

Steve Helms is one of the top position traders in the Chicago markets. A native of North Carolina, Helms came to Chicago after graduating from Davidson University with the intention of establishing himself in the world of commodity trading, which he had been involved in in his home state. Upon arrival, he had fairly modest funds, but quickly rose to become one of the best position traders in agricultural futures on the CME. Although Helms later moved to the S&P 500 index futures market, he always had multiple positions open simultaneously in different markets. Helms became an excellent trader because of his ability to detach himself emotionally from trading.

I spent many hours talking with him, but I never managed to catch his eye. Helms's eyes constantly wandered along the quote lines on the Quatron scoreboard (Quotron is an electronic brokerage system. - Note). Helms' strength as a trader lay in his deep knowledge of the market and patience, coupled with a player's intuition. After opening a position, traders can no longer look at the market with the eyes of an outside observer. They have opinions, they formed them based on analysis and, what is much more important, they decided to test the effectiveness of the opinion by betting money on it.

What sets Helms and other successful position traders apart from the rest of the crowd is that when they enter a position after careful preparation, they remain as objective about the market as humanly possible. It's not just a matter of developing a methodology based on a combination of technical analysis and fundamentals, it also requires an intuitive understanding of the market. Many position traders, having developed a manageable trading plan that takes into account technical factors and relevant fundamentals, still refuse to implement it because their intuition does not allow them to do so. All successful traders will tell you that they prefer to refrain from taking obvious trades if they feel some kind of threat on an intuitive level.

Going back to Bing's point about leaving your brains at home when scalping, the opposite is true for a position trader. Your brain works in full force when a position is open. If you fall asleep at the wheel, you risk getting into an accident. Many good position traders have told me that after returning home they continue to track prices on the computer. They listen to television business news in the early morning and watch developments in foreign markets while we all sleep. They are on the lookout for news that could change the course of events in the market.

A good example is a speech by former Fed Chairman Alan Greenspan, in which he spoke of “irrational exuberance.” At the time of the speech, real euphoria reigned in the markets, the bulls ruled the show, the bears were nowhere to be seen, and the monetary policy of the authorities looked convincing. In short, the market was not ready for such words. Chairman Greenspan may have been correct in his long-term assessment of the situation, but the warning was too early. We saw how the market immediately reacted downwards, but the failure turned out to be short-lived. The market immediately turned around, after which we witnessed a bull run of truly epic proportions. The four-year rally lifted the S&P 500 and NASDAQ 100 stock indexes to record highs. A position trader tracking the reaction to the “reckless exuberance” realized that certain and far-reaching conclusions could be drawn from the market reaction. The truth was that the market did not want to go down. This should have been a clear warning to anyone considering selling. The best traders have it all figured out: when the Fed chairman tells you that stocks are a little overvalued, and then the market goes up, the bears better keep their heads down! Many astute traders made fortunes in the next two or three years because they recognized the unprecedented length of corporate earnings growth that was coming as a result of the year 2000 (Y2K) phenomenon.

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How position trades work A position trade works like this: you buy the currency of a country that offers a high interest rate, and sell the currency of a country that offers a low interest rate. Position trades are profitable because

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Why Position Trades Work Position trades work because there is a constant flow of capital between countries. Interest rates are an important reason why some countries attract much more investment than others. If the economy

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When Position Trades Don't Work So far, we have shown that position trades will work best when investors are risk-averse. But what happens when investors are less risk-averse? Then position trades are the least profitable. At this time

Position trading

Hello dear readers. Today I present to YOU ​​one of the best courses - Positional Trading. The course will be very useful for both beginners and experienced traders.

I suggest you get acquainted with what, according to the lecturers of this video, listeners will receive:

I do not hide which Forex broker I am currently working with: . Alpari , FX Open , , you will learn about brokers for trading on the stock exchange and their rates.

It is possible to constantly earn income from trading on the foreign exchange market!
The unpredictability of trading in the foreign exchange market is just another fairy tale.
You will really be able to learn how to make a profit constantly, and part with chronic worries associated with whether you have money for tomorrow.
You will have a reliable increase in money, work exclusively in this area, forgetting about offices and stupid bosses.
Become confident in looking into tomorrow!
Stable position traders live this way.

Fact from the history of trading: The best results in trading are achieved by none other than positional players.
How do they do this? The secret to success is understanding the economic market.
Position players don't make dozens of trades in one hour and don't try to close the trade before the end of the market day...
Such traders do not lose a share of their income at the apogee of the trend.
They take the direction of the trend and close trades later.
Ultimately, it is necessary to understand that: Huge capital can only be obtained through impressive price movements, i.e. in a trend.
I’ll say more - only this trading method provides the opportunity to receive income steadily and constantly.
But, most importantly, you will be able to learn this very quickly!
The question arises: “Do I personally need all this?!”

Are you still asking questions?

Even if you consider yourself a super-duper trader, think about this:
You can carry out trading operations even for $10,000 per day, but if you lose everything very quickly, then what’s the point?
What's the point of making money by trading like this on the market? Trading on the market is your main income.
And now - it will become sustainable!
Just imagine, in the near future you will be able to save thousands of nerve cells, for this reason you will no longer lose all your earnings in a minute.
You will stop fearing the future and thinking: “Will fortune smile this time or will everything be completely ruined again?”

4 reasons to study this course.

1.Original and current source information.No extra water. Without retelling well-known rules. Only the latest, current data that cannot be found in the public domain.
2. An authoritative teacher. The lecturer is a highly experienced practitioner and teacher, he has taught trading on the market to more than 200 traders.
You will learn from the experience of a professional working in a large stock exchange firm, and not from a self-taught trader.
3. Fresh understanding. Psychology is the only one of the main nuances of trading in the market. Only by developing as a person can one hope for victory.
You will set yourself up for a sustainable income and start thinking in the spirit of success.
4. The usual method. Tested: the simpler the strategy really is, the more reliable and longer it functions. This is true for trading in the market as well.
All data is classified and structured, you will understand everything correctly and be able to use it.

A little about the Lecturer Oles Sribny positional trading course. Stable profits on the stock market, which you can download:

And also check out why you should at least watch this webinar:

Here's what you'll get in the course. What's inside?

For trading using the strategy presented in the article, it is best suited broker ZERICH. I presented a detailed review of this broker for trading on the stock exchange and NYSE in the article

Removed at the request of the copyright holder

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Stock trading

Good afternoon, dear readers of the trading blog. Today in this post we will continue to look at different trading styles. If the previous article is what is my trading style part 1- was more about discipline, then today’s one relates to your goals and prejudices.

Each trading strategy is individual, taking into account the trader’s free time, his financial goals, attitude to risks, and more. But it’s not a fact that your swing trading strategy will suit someone else. There are as many trading systems as there are traders. Read this post to the end and learn the features and characteristics of different trading styles. Spend some time testing and defining your trading style and never change it again.

Basically, there are four trading styles, which we will consider further:

1. Scalping
2. Day trading
3. Swing trading
4. Position trading

This is a subtype of intraday trading. But I highlight it separately because scalping has its own characteristics.

Scalping– it’s like drag racing in the racing world. Very fast, short, emotionally intense and, as a rule, professionals do it. Their trades can last seconds, and the long position will immediately be replaced by a short one. Trading with this style requires lightning-fast reactions, quick decision-making and action without hesitation.

I once heard an interesting and informative story about a scalper trader. A guy was trading when his wife slipped and fell. She began to call him for help, since she could not get up on her own and was suffering from terrible pain (a fracture was diagnosed at the hospital). But the scalper husband asked to wait, as he was busy with an open position that he could not leave. Like this. A scalper should not be distracted during the trading session.

Now I’ll give you some advice – scalping is 100% not for beginners. And not even for experienced people. This style is practiced well capitalized professionals with good health and a balanced but quick character. If during trading, your mouse cursor sometimes does not hit the desired icon, button, or has difficulty double-clicking, if you find yourself watching TV or distracted by a crying child, then you will never become a scalper. This is a very difficult profession and hellish work.

Day trading

This is intraday trading, that is, a position is opened and closed during one trading session. Let's immediately determine the obvious advantages and possible disadvantages of this style.

So, the pros:

• Compared to a scalper, a day trader sleeps better!!! Less risk and emotional stress, trading several hours a day;
• Higher leverage or margin;
• Pure techies, that is, they don’t bother with fundamental analysis of companies;
• Don't worry about bad news that comes out between trades.

Possible disadvantages. Why possible? Because with the right approach they can be avoided:

• Risks. Remember: the greater the possible profit, the greater the risk. This applies to increased leverage or margin;
• Good capitalization - at least $25,000... A day trader has increased costs for commissions, exchange fees, analytics, etc., since he trades often;
• High level of trading skill. Especially technical analysis skills.
• It should be considered as a main job.

Swing trading

This is the style I trade. For me, there is one main difference here from day trading - time. I have more of it. Also, swing traders sometimes hold positions for several weeks. A money invested in an asset for a longer period of time brings more profit. For example, a day trader opened a position at the bottom of a trend and closed it at the end of the session. But this does not mean that the trend is over.

Time is the main trump card for both the trader and his money. What are the disadvantages of this style? For me personally, if a person does not know how to wait, cannot tear himself away from the monitor, transferring an overnight position, then the path to swing trading is for him Bye closed. You need to develop patience in yourself. It will bring you results not only in the field of trading.

Position trading

I don't want to stay here much. It seems to me that everything is clear. The position is held for months; ideally as long as the trend continues. That is, all intermediate rollbacks and corrections are swallowed. In other words, if you consider yourself a position trader, then a profit fluctuation of 10-15% should not cause you emotional disturbance. A fairly large drawdown in a trading account is possible.

In general, if we sum it up, we can conclude that every trading style is profitable with a smart approach. As I said earlier in this post, you must get out of your goals, tasks, workload, experience in trading etc. Remember the main postulates:

1. The greater the possible profit, the higher the risk;
2. The longer you hold a position, the less noticeable your technical errors are. For example, if a scalper buys 1-2 cents higher than expected, then there is a problem; For a swing trader this is normal.

One more tip. Spend a month defining your trading style. Next, record your results in your trading plan. If you don’t do this, then you risk jumping from one trading strategy to another without ever finding your place in the market.