samedi 23 mai 2020

Position trading is the longest-term trading style that requires a good understating of fundamentals, an exceptional gut feeling as well as a good foresight into how price will fluctuate in the long-term. It’s a trading style for traders with steel nerves and angelic patience, those who don’t mind waiting for long periods of time for their well-deserved rewards.

The primary goal of position traders is to benefit from the dominant trends rather than from short-term market fluctuations.

Normally, position traders are not only extremely smart but also very wealthy. To withstand substantial troughs and swings of prices, any position trader needs to have a sizeable account.

Position traders are the independent thinkers. They carry conviction in their view and tend to ignore random market fluctuations that might frighten away less confident players.

Example of a trader

Warren-Buffett.png

Warren Buffet is the first who comes to mind when we think about the most prosperous market participants executing long-term trades. He is a legend and one of the wealthiest men in the world. He is widely known as the most successful investor and has been a position trader in FX market since 2002. That time Buffet sold the US dollar arguing that it was to fall because of America’s trade deficit. The next few years were successful for him, but in 2005 the US currency went up and Buffet decided to exit his short USD position. As a result, he earned $2 billion on the trade. Had it not been for the USD advance in 2005, his profit would have been $1 billion higher.

Related Posts:

  • 77- Risk management in Forex tradingRisk management is the key element of Forex trading. It’s better to understand this simple fact rather sooner than later and put a lot of efforts into mastering this science.By definition, risk management is the identificatio… Read More
  • 73- Trading styles : Trend tradingIt is another style of trading that suits those who are looking to take advantage of trending prices that according to them might persist for a lengthy period of time. Such traders will probably try to identify profound vu… Read More
  • 75- Trading styles : Swing tradingIt is a type of trading which combines fundamental and technical analysis to catch the most significant price movements and avoid trading at idle times. It is mostly a medium-term trading style that requires holding positio… Read More
  • 74- Trading styles : Carry trade It is a type of trading in which a trader sells a certain currency with a low interest rate and then uses it to purchase another currency that yields higher interest. The main goal of a carry trader is to capture the exist… Read More
  • 76- Trading styles : Day tradingIt is another short-term trading style. A day trader normally takes a single trade a day and closes it once the day is over.The key goal of a day trader is to generate profits within the course of a day; they don’t like keep… Read More

0 commentaires:

Enregistrer un commentaire

Follow US on Facebook

Popular Posts