Forex position trading approach is trading where traders enter and exit trades based on large, macroeconomic analysis and longterm timeframes. It is an efficient approach, mainly works for small loads and with average point. In article 4 Steps to Forex Position Trading you can read 4 main points about each position trading strategy.
Position trading forex strategy main points:
1) Position traders hold trades for several weeks, months or years. Short position trading means currency pair or stock selling and long position trading means buying.
2) Position trading sizing : In position trading leverage is small as 1:10 or 1:20 etc.Traders risk small amounts of investment because they use high risk trading strategy. Position trading strategy risk for example 200 pips and target 1000 pips. Daily traders risk (for example ) 50 pips or 80 pips and try to target 100 till 150 pips.
3) Position traders need to be patient and let the market unfold for them trade setup.
4) when you trade as position trader you need to use longterm timeframes as daily, weekly and monthly charts.
The Advantages and Disadvantages of Position Trading :
Position trading has advantages and disadvantages. Advantage is high winning ratio and excellent reward. Disadvantage is huge risk per trade.See video above for more details.
Are you daily trader or swing trader or maby position trader ? Please write your comment about forex position trading below.