WHAT IS POSITION TRADING? Straight to the Point #STTP #37

In around two minutes you will know what is Position Trading. You will get both professional definition and easy explanation. No intro, no outro, straight to the point.

Position Trading is a trend following type of trading.

Position traders are the bridge between investing and trading. Investing basically means buying shares and holding them for a long time with the expectations that they will cost much higher in the future.

Trading is buying and selling shares with the expectations of gaining the profit as soon as an opportunity arises. Could be in a matter of seconds sometimes. Such trading technique is called scalping. Watch one of my next videos to learn what scalping means.

And like I said preciously, Position Trading is the bridge between trading and investing. Position traders make less trades than your typical trader, but they make more transactions than usual investor.

Position traders usually follow different trends. If they feel like that the stock will keep appreciating in value for the next 3 months, they will keep this stock for 3 months.

Some amateur traders unwillingly become position traders in some of their investments. If such trader bought shares of a company, which later decreased in value, he or she will keep them until they become profitable again. And sometimes it takes weeks, months, or it might never even happen.

In this case they say that their trade has become an investment. While in fact, they are doing position trading, since their mindset is still the same. Which is to sell shares as soon as they become profitable.

If you find my content interesting, please consider subscribing to my channel. It helps a lot as a beginner creator. And let me know if there is anything you would like to know about personal finances and investing.

[TheRussianDude]

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[TheRussianDude]

Let's talk about trading real quick ;)

[ericclarkson]

So many amateur traders become position traders eventually