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Chapter 30, Part II. What Type of Trader Are You? Page 5

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 27, 2013.

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  1. Sive Morten

    Sive Morten Special Consultant to the FPA

    Aug 28, 2009
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    Positional Trader

    Although we might say that day trader is a positional one from the scalp trader point of view, but to keep within hierarchy, let’s call those who holds position overnight or longer as positional traders. Positional traders usually trade at daily and higher time frames. Positional trading has one big advantage – you can combine it with your day job. If you can’t monitor your position throughout the day, but have some hours every day to be with market – this is your choice. Positional trader focuses mostly on medium term swings and patterns on the market and could hold a position from few days to months or even years. This type of trading demands a lot of patience, diligence and discipline, since you place trades for an extended period of time and you can’t do another 3 or 4 in short time as in scalp trading to offset the loss in the current one.

    Here are some specific issues of positional trading:

    - From the one point of view you will have a lot of time to plan the trade and even to monitor starting moments if it’s realizing. The reverse side of that process is that planning demands extra scrutiny;

    - You do not need to monitor your position through the day – just keep an eye on it at the end of the day;

    - Demands extreme patience and discipline;

    - Positional trading does not demand solid knowledge of market mechanics;

    - Expenditures on software and hardware are not so solid. You may even use daily chart and delayed intraday, say, hourly charts;

    - Result of trading is strongly linked to any one particular trade;

    - Demands including of fundamental analysis or at least understanding current economy situation and how it could influence on pair dynamic. Fundamental analysis becomes very important if you hold positions for months or even years;
    #1 Sive Morten, Dec 27, 2013
    Lasted edited by : Oct 9, 2016
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