POSITIONAL TRADING TIPS:

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Published: 14th April 2011
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Positional trading is a delivery based trading. It means buying shares and holding them for a certain period of time is called delivery based trading. Whatever the shares you buy will be in your Demat account. Once you take delivery of shares you can hold them for as long as you wish. To take delivery of shares, you must have sufficient funds in your account. You donít get any boundary to buy shares in delivery. If you have Rs.10000 in your account means you can buy shares worth of Rs.10000 and not more than this. When you buy shares, there may be a possibility that the price may fall, but not to panic. In share market it is a general practice that shares go upward and downward. If the shares go downward then there is no need to panic just place a convenient stop loss to sell your shares. Generally, Most of the investors/traders wait till their shares come to their buying level and then sell them off, but generally they forget that it is actually their buying level of shares and from this level onwards the share price may start moving upwards.



Positional trading is good for those traders or investors who seem to further create more capital from stock market and do not want earnings on regular basis from share market. In this sort of trading the trader has to see long term charts and holding period of shares could last for some days to a few months. Thus, based upon your trading style i.e. whether you desire income on regular basis or want to invest in share market to create wealth and the profit expectation you can select your trading style as day trading, swing trading or positional trading.

The prevalent profit of delivery based trading is that you are not bound with time for selling the stock. You can hold the stocks for as long as you want. So, you can always hold a stock until you are getting a significant profit from the investment. Therefore, with delivery based trading you can always take your time to take a decision and reduce the risk of losses.

The biggest disadvantage of delivery based trading is the higher brokerage rate. The brokerage rate for delivery based trading is relatively higher than the margin trading. You have to recompense the full price of the stock for delivery based trading, whereas in case of margin trading you can buy stocks by paying only a part of the stock price. So, in case of margin trading you can buy more stocks by investing less. In delivery based trading you can never benefit from short selling. That means you have to hold the shares before you actually sell them. These are the benefits and disadvantages of delivery based trading. Whether you invest through delivery based trading or not solely depends on your financial capacity and the willingness to take risks.

Capitalstars also give Positional Cash and Positional future with Stock Cash and futures. Capitalstars Financial Services is an Advisory firm incepted with a vision of providing Fair and Accurate calls in Indian Share Market. We concentrate in thorough fundamental and technical research analysis in equity and commodity tips to provide the best services. We provide Stocks tips as well as delivery calls in Stock Market, NSE and commodity tips, commodities in MCX and NCDEX including bullions, metals & Agro-commodities traded in MCX and NCDEX. We provide recommendation through live SMS & Chat room. Our SMS facility is a very effective system which ensures the instant message delivery without any loss of time, so the clients get sufficient time to execute their traders in order to bring maximum profits.

Capitalstars has a product called Positional cash in which they provide more than 15 delivery calls in stock cash in a month with an accuracy of more than 95% and 1-2 per month with complimentary priority calls and another product Positional Futures in which they provide more than 8-12 delivery calls in a month in stock future with complimentary priority call 1-2 per month with timely follow ups. You can also avail free trial for two days to test their accuracy and if you are satisfied then you can join their services. You will get sufficient time to enter in the calls and can maximize your profit with them.

For more details log on to www.capitalstars.com



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