Ultimate Guide to Positional Trading | Motilal Oswal

Ultimate Guide to Positional Trading


Trading requires constant knowledge and know-how, which takes a lot of effort. If you want to trade in the market but don't have the time, you can consider positional trading.

It can be a good option as long as you trade with proper knowledge and research. Let's explore everything you need to know about positional trading.

Open Trading Account and Start Trading!

What is Positional Trading?

Positional Trading is an investment approach that involves buying and holding assets for an extended period. Unlike other trading strategies, positional trading disregards short-term price fluctuations. Instead, the focus here is on long-term growth potential.

The primary goal is to capitalize on long-term trends and not be influenced by short-term market movements.

What are the Advantages of Positional Trading?

Here are some of the advantages of positional trading:

  • Patterns in positional trading are typically durable, spreading over months or even many years. Diminishing the requirement for short-term supporting techniques.
  • Traders can make more money by spotting opportunities where a trend is likely to pick up soon.
  • This approach brings mental peace and lets traders focus on other aspects of their investments and trades.
  • Advanced tools and technology provide quick access to market insights, saving time on research.
  • Positional Trading can be seen as a mix of long-term investing and occasional trading, offering the benefits of both.

Are there any strategies involved?

Positional traders use different methods to make their trading decisions. They may analyze charts and historical data, look at the overall health of a company, or use a mix of both approaches.

They also consider larger economic factors and general market trends to select investments they believe will increase in value. The following are the basic strategies involved:

  • Technical Strategy: Charts are used to predict an asset's long-term trend, with a focus on supply and demand dynamics. It is solely influenced by market conditions and disregards fundamental factors.
  • Fundamental Strategy: The underlying factors that influence an asset's price are more heavily considered in this strategy. It thinks about subjective factors and evaluates the organization's worth and potential development utilizing freely accessible information.
  • Techno-Fundamental Strategy: As the name suggests, this approach joins both technical and fundamental analysis. It uses diagrams to affirm key moves and makes trading decisions based on both aspects.


Positional trading is a useful method when it comes to applying it as an investment approach. There are undoubtedly risks involved, like every investment method. Trading can be tough for people with full-time jobs, specifically in today’s time. It often demands constant monitoring, which can be challenging. In such cases, positional trading can be the solution.


Related Articles: Unlock Market Insights With Marubozu Candlestick Pattern | What Does a Paper Umbrella Candlestick Indicate | How to Find Stocks to Swing Trade | Difference Between Margin Trading and Leverage

  • Open your FREE Demat Account in 5 Minutes
Select State
Select City
By submitting your details, you are authorising us to call you or send promotional communication even though you may be registered under DND