What does the trader do with the position?
The position of the position is a trader of shares that maintains an investment for long -term purposes. Unlike some other types of stock traders, a trader can hold its position of the month or even years. While other shares traders can deal with short -term fluctuations of stock market, traders are not positions. They believe that successful long -term investments outweigh the daily stock market movements. Unlike other types of trading that requires the trader to make a decision on the spot, and risk large amounts of money for a moment, traders spend most of the time for basic analysis, a way to look at the economic, social and political forces that affect supply and demand. Real shops do relatively rarely, up to careful consideration.
When the supply is low, the demand is and the price is generally high. Conversely, if there is an abundance of item, demand and prices is likely to be lower. Therefore, the merchant uses available information to determine,When he can buy shares cheaply and how long he must hold them until the selling price is high enough to make a profit. Some of the economic reports that a trader of position can use to include its trades include gross domestic product (GDP), employment data and consumer price index (CPI).
Due to the long -term nature of trades created by a trader, profits can be very large. The risk for rewards in trading positions is generally very high. In other words, the amount that can be made on each store is far from the amount that could be lost in the same transaction. This means that when a trader loses its position, it can be easily minimized. On the other hand, when he wins, his profits are worth the risk he could take.
trading in the position of its disadvantages. This type of stock trading is not for anyone who might try to achievet of rapid profit. He could wait years to see a profit from his store while losing money while he has his position. Patience is crucial when trading positions.
The opposite of the business merchant is a daily trader. Daily traders make shops based on daily market fluctuations and can do many stores every day. A daily trader can buy shares and sell the same stock within hours or even minutes. Daily trading is very speculative and very risky. On the other hand, position trading is considered to be one of the least risky ways of trading in market stocks.