Positional Trading — The Medium-Term Path
Recommendations spanning weeks to months — based on Technical + Fundamental analysis.
What is Positional Trading?
Positional trading means buying stocks for a medium duration (weeks to months). Unlike intraday trading, you hold stocks for days or weeks. It combines Technical Analysis (chart patterns, trends) with Fundamental Analysis to identify opportunities.
Time Horizon
1 — 6 months
Objective
Trend-based profits
Risk Level
Medium
Positional vs. Other Styles
| Feature | Intraday | Positional | Long-Term |
|---|---|---|---|
| Duration | Same day | Weeks — months | Years |
| Risk | High | Medium | Low-Medium |
| Analysis | Technical only | Technical + Fundamental | Primarily Fundamental |
| Daily Attention | Constant | Moderate | Minimal |
| Suited For | Experienced traders | Active investors | Patient investors |
Who Should Consider Positional Trading?
Key Rules for Positional Trading
Always use a Stop-Loss — predefined exit point to limit losses if the trade goes wrong.
Follow the trend — "The trend is your friend." Don't fight the market direction.
Position sizing — never risk more than 2-5% of your capital on a single trade.
Book partial profits — take some profits off the table as target levels are reached.
Don't overtrade — quality setups over quantity. Wait for the right opportunity.
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Disclaimer:
Investments in securities market are subject to market risks. Past performance is not indicative of future results. Please understand the risks before investing. Trade Encore never trades on your behalf.
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