Positional Trading News – Today in this post we will know what is Positional Trading and how to do Positional Trading. People earn profits of lakhs of rupees every year because this trading is such a trading that can make you earn more profit than other trading and let’s know about positional trading.
Positional Trading Meaning
The Hindi meaning of Positional Trading is to do “business of position”. In this trading, we do trading for more than a month.
What is positional trading
The trading in which we do trading for more than 1 month is called Positional Trading.
What is Positional Trading: There is a similar strategy of stock marketing in which we hold the shares of any one company for at least 1 month to 1 year. After this, when there is a boom in that stock, then you can batch it and earn profit.
In Positional Trading, we can hold the share from 1 month to 1 year. After this, when there is a boom in the stock market. You make profit by batching this stock.
For example, you buy 10 shares of any company for Rs 1000. After a few months, there is a jump of 20% in that stock. You batch this share at this price. Due to which the price of this 1000 share of yours becomes 1200 rupees. In this way you earn a profit of Rs.200 in this.
How to do positional trading
To do Positional Trading, first of all you have to decide for how many days you can keep the stock. You must hold the stock for at least 1 month. So that you do not expect any loss in it.
After this you can buy the shares of any one company. For example, you buy 10 shares of any company at the price of 2000. After this you buy 10 more shares at the price of 1900.
After a few months, the price of this same share increases to 2500. So you get a profit of Rs.500 on one share. Similarly, you get a profit of Rs 10,000 for 20 shares.
How to set stop loss in positional trading
To apply stop loss in Positional Trading, you must first make a plan for it. In this, you have to decide that when the stock falls below how much, it should be sold automatically and when it becomes profitable, that share should be sold automatically.
If you do not know what is Stop Loss, then to know about it in detail, read our post given below, you will get all the information in it.
For example, you bought 1 share of a company for Rs.200. After this you put a stop loss of 180 on this stock. So that if the price of this share falls below 180, it will automatically be sold. So that you do not suffer much loss.
Apart from this, you can also put this stop loss in profit. You can put this stock at 240. So that as soon as the price of this share becomes 240, then this share will be sold automatically.
In this way you can apply stop loss in Positional Trading. So that you will be saved from loss and you will also get good profit.
Advantages of Positional Trading
We get a lot of profit from Positional Trading. It has many other benefits like-
In Positional Trading, we come to know very easily that when you have to buy any stock and when to sell which stock. Due to this, there is less scope for you to be harmed in it.
Also read What is Swing Trading?
We can earn a lot of profit even by doing Positional Trading part time. Because there are very few trades in this, so that we can analyze this stock very well. After analysis, we can add more shares to it.
If you buy the stock for Positional Trading then you have very less volatility in it. Because of this the stop loss does not make much difference on it.
Disadvantages of Positional Trading
In Positional Trading, we have to hold a stock for a very long time. Due to this, due to this, the entire Capital Block is done.
Due to being a capital block, you do not get much profit in this. But you don’t even get harmed in this.
How to make money with positional trading
Positional Trading is easier trading than all the others because in this you do not need to watch the market everyday.
All you have to do is research on the stock of a company once and buy and keep the stock of that company. Once you buy the stock of that company, you just have to wait for a few months so that the price of that stock increases. If it increases, you can earn good profit by selling it.
In Positional Trading, remember once that whenever you buy shares, then buy the shares of such a company whose shares rise within 6 months and the price of its shares increases so that when you sell that share, you get the maximum profit. More profits can be made.
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