What Does a Position Trader Do?
Position trading, also known as long-term traders, is a type of futures speculator. Traders who hedge their long and short futures contracts hold positions for days or weeks.
Position trader
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- Chinese name
- Position trader
- Foreign name
- Travel to watch industry
- Geolocation
- West Exit of Nanheng Street outside Xuanwumen
- climate type
- Warm temperate semi-humid climate zone
- Position trading, also known as long-term traders, is a type of futures speculator. Traders who hedge their long and short futures contracts hold positions for days or weeks.
- Among various speculators, position traders profit from obvious price changes by acquiring trading positions. A trader who believes that the futures price will rise will buy the contract, while a trader who believes that the futures price will fall will sell the contract. The former refers to the market as a bull market and is in a long position, while the latter refers to the market as a bear market and is in a short position. In both cases, the position trader will maintain his trading position until the price change he envisions occurs, or until the trader changes his initial expectations.
- Because position traders generally pay attention to their general interests, they usually have to maintain their futures positions (short or long) for a long period of time, that is, long-term trading.
- Investors in position trading can choose stocks based on profit expectations, increased trading volume, stock split statements, excellent performance, or beautiful trend graphics, all of which indicate that kinetic energy may form a breakthrough. The selected stocks must have huge profit potential to offset the risks (longer holding positions) that may result from a decline in stock prices.
- All position traders must analyze the futures price trend. The price analysis methods they use can generally be divided into two types: basic analysis and technical analysis. (In a broad sense, basic analysis is also part of technical analysis. , That is, the basic technical analysis method). Among the position traders, there is a so-called basic analysis school that focuses on the former, and a so-called technical analysis school that focuses on the latter. However, many people now advocate combining price analysis with basic analysis and technical analysis.