Traders who trade in the Forex market have their own unique trading styles. In the previous articles, I provided information about their trading style. If you haven't read it, you can check it out here - Scalping, Day trading, Swing trading. As you know, there are different trading styles in the forex market. In this article, I will talk about one of them - the Position trade. In this type of investment, the trader chooses a long position and usually makes a few trades per year. During this trading time, the trader spends little time working at the computer. But he gets big profits from big trades.
Position traders are usually trend followers. They identify a trend and an investment that will benefit from it, then buy the investment and hold it until the trend peaks. With the right trading strategy, their long-term wait pays off. They are passive investors because they advance with a buy-and-hold investment logic.
More experienced position traders use technical analysis, fundamental analysis, or a combination of both to make their trading decisions. They also rely on macroeconomic factors, general market trends, and historical price patterns to choose investments they believe will go higher, and in this way they plan their way.
Because forex markets are sensitive to economic and political developments and can react to these developments with very fast and very high price movements, the position trader may also face losses. To successfully trade positions, traders need to do basic research, determine the right entry and exit prices for the asset, and focus on the big picture. required. He should also know how to draw trend lines with moving averages and have a plan to control risk, often through a stop-loss level.
If you don't want to deal with the frustrating reality of daily price fluctuations, you can trade positions. In this trading system, it is of great importance to wait, to wait, that is, to be patient. It is not a method for the impatient. It is a suitable trading style for traders who want to make stress-free trades.