A Perfect Position Trade

Mar 23, 2012 at 3:09 pm in Position Trading by · Leave a Comment »

In this article I’d like to share with you what I consider to be a perfect (or “textbook”) position trade: a trade that ran to a good profit over the course of three months and which along the way took more in dividends than it cost in financing charges.

The Two Phases of Position Trading

Jan 5, 2012 at 1:08 pm in Position Trading by · Leave a Comment »

Day trading is all about notching up a series of small profits every day. Position trading, at least in the way that I practice it, consists of two distinct phases.

Position Trading #7: Dividends

Oct 10, 2011 at 10:48 am in Position Trading by · 2 Comments »

Many first-time spread bettors will not even consider the impact of dividends on their trading returns, and may not even realise that spread bets pay dividends (or the equivalent adjustments or credits) just as traditional share holdings do.

Position Trading #6: Stock Picking

Oct 7, 2011 at 10:39 am in Position Trading by · Leave a Comment »

For me, the right stocks are the ones that I expect to rise in price soon after I have established a position, and / or the stocks that have a lot of upside potential when they do rise.

Position Trading #5: Leverage

at 10:32 am in Position Trading by · Leave a Comment »

Leveraged trading means trading on borrowed money. To bet at £1-per-point on a stock index priced at 1000 should require you to deposit £1,000 into your spread betting account, but it doesn’t. The spread betting company might ask you to deposit just 1/5 of the amount (£200)

Position Trading #4: Pyramiding

Oct 5, 2011 at 11:37 am in Position Trading by · Leave a Comment »

The position size may grow over time by averaging down on a falling stock (not recommended) or by pyramiding up on a rising stock. In this article I’ll demonstrate my preferred pyramiding approach, and I’ll explain why it is the safer option.

Position Trading #3: Position Sizing

at 11:20 am in Position Trading by · Leave a Comment »

Position sizing means deciding on the amount that you will ‘invest’ or ‘stake’ in a speculative position. Big position sizes produce greater gains, but at greater risk unless you also apply tight stop orders.

Position Trading #2: Stop Orders

Oct 3, 2011 at 9:44 am in Position Trading by · Leave a Comment »

Stop orders are useful for stopping losses, no doubt, but that’s only half the story. As well as stopping losses, traders need to also run their profits, and stop orders can help you to lock in those profits

Position Trading #1: Diversification

at 9:44 am in Position Trading by · Leave a Comment »

One of my seven pillars of position trading is diversification. Not only is this important for managing risk, so that a single bad apple won’t kill me, but also it is important for maximising profit

The Seven Pillars of Position Trading

Sep 28, 2011 at 1:11 pm in Position Trading by · Leave a Comment »

My implementation of the position trading approach is all about keeping it simple and (above all) applying good money management techniques, on the basis that if you look after the downside then the upside will take care of itself.

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