Mastering the art of a position trading strategy

Since widespread trading in Norway, many people have tried to capitalize on owning shares and stock indices.

However, many individuals constantly lose money because they chase short-term trends and continuously sell out of fear of losing what they already gained.

Position trading strategy in Norway

Many different factors determine an investor’s success in stock trading options; if done correctly, fear and greed can easily be used to your advantage when following simple strategies regarding stocks.

The most important question you should ask yourself is when to buy the stock? By analyzing past trends or by looking into financial indicators, it’s possible to figure out what was happening at that time.

This could be anything from market sentiment, information affecting the company’s business etc.

One popular tool among investors is the expected yield indicator (EFI) created by Trend Spotter AB. It has excellent insights on how much money one can expect to make with their investment along with

Since you’re reading this text, we assume you either:

A) Were one of those people and now want to know how others avoid doing so or
B) Already made some successful trades and now want to expand your strategies.

Either way, we’ve all been guilty of buying high and selling low at one point or another.

The question is:

How do we stop it?
What’s stopping others from doing the same?
You should never let greed determine your trading strategy (buying high), and similarly, you should never let fear determine your selling strategy (selling low).

Tips to stay in the game?

The following are some tips that can help you stay in the game for the long run when position trading:

Use trailing stops

This will help you lock in profits and cut losses.

Have a plan before entering a trade

Know your exit point before getting into a business. This could be either a fixed price or a percentage profit you’re looking to make.

Diversify:

Don’t put all your eggs in one basket. Spread out your investments over different stocks/indices to lower your risk.

Don’t trade on emotion:

We’ve all been there, buying high because we’re greedy and selling low because we’re scared. This is a recipe for disaster and will most likely lead to losses in the long run. Try to trade based on sound analysis and not emotion.

Use stop losses:

This will help you cut your losses if the stock moves against you.

Don’t fall in love with your stocks:

This is another mistake that new traders tend to make. If you bought at $10, it doesn’t seem reasonable to sell for $11, so instead, people hold on, hoping the price will go up again. Don’t do this! If you can’t find a valid reason to purchase the stock, don’t buy it no matter how cheap it is!

HODL:

Even if all of the above strategies are done correctly and nothing goes wrong, there’s always an element of uncertainty when trading.

There isn’t a 100% guaranteed way to profit from trading unless you’re Warren Buffet or George Soros.

So stick through thick and thin; if you believe in your strategy, then chances are high you’ll be singing the “happy” tune in a few months.

Don’t mess with intraday trading:

Intraday trading is mainly for people who have a gambling addiction and is only done by very experienced traders. If you’re not one of them, then once again, don’t do it!

Diversify your income:

Another mistake that most new traders tend to make is putting all their eggs in one basket.

Having a job while doing position trading can help lower your risks because if you lose money from stock trading, there’s still another source of income to pay the bills.

Even better would be to keep long term positions when you go on vacation or leave for work, so you won’t even notice what happens in the market.