Please Note: You are always welcome to ask questions which I will answer the following week for these SPRS training series.
Position Trading is growing in popularity these days as more and more people realize they can make extra income trading the markets but they don't have to spend the entire day sitting in front of a monitor checking stocks.
Position Trading is the ideal trading style for those who work full time and want to trade the market in their spare time.
It is also the easiest trading style to learn AND since the market moves in sideways patterns 60-70% of the time, there are far more position style entries than swing or momentum style entries on any given trading day.
The first step to becoming proficient at position trading is to build a watchlist of candidates for position trading. In this style of trading, planning and preparation are the first step, rather than trying to find a crossover signal or a buy signal as in swing trading.
This means you have ample time and don't need to feel rushed or pressured into trading. And whenever you are less stressed you are going to do better trading.
The first step then is to develop a watchlist for position trading. Summer is an ideal time to do this as quiet accumulation begins in July when the huge funds managers start to buy quietly without the market participants noticing.
You can build a watchlist right in MetaStock under favorites quickly and easily. And the fundamentals you need for position trading are also easily accessible and simple to integrate into your MetaStock charting.
Fundamentals and technicals need to be combined when selecting stocks for your position trade watchlist. This is important because you are going to be holding the stock for a longer period of time than a swing trader or day trader so fundamentals do matter.
Chart 1
You need to decide what trading parameters fit you and this will help you choose your position watchlist stocks. As an example, you may prefer stocks forming a long term bottom as one criteria as DELL is doing right now.
Or you may wish to build the watchlist based on new emerging technology, which also fits DELL as this company is reinventing right now, changing what it sells to its customer based.
Or you could choose stocks under a certain price range. Price range is an important parameter to use no matter what trading style you trade but it can be particularly useful to position traders.
Setting up a watchlist is the first step in preparing to position trade. It takes a little time to step up but it will give you substantial returns for your efforts.
Once you have your watchlist of 20-40 stocks, this streamlines your workload, making trading fun, easy, and simple. Watchlists eliminate the guess work, help you enter platforming stocks before the big moves, gaps or sudden runs, and net you higher profits.
Send questions to
info@technitrader.comQuestions will be answered the following week in this SPRS Series
Trade wisely,
Martha Stokes, C.M.T.
Member of Market Technicians Association
Master Rated Technical Analyst: Decisions Unlimited, Inc.
Instructor and Developer of TechniTrader® Stock Market Courses
http://technitrader.com
MetaStock Partner
(c)2011 Decisions Unlimited, Inc.
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