Position and Trend Trading
In This Chapter
• Position trading as a form of active trading
• Benefits and drawbacks of position trading
• Riding the trend
• All about arbitrage
Position trading and trend trading are extensions of the active trading philosophy of grabbing profits, then exiting the trade. The only difference is the time period. Some call position and trend trading short-term investing. True investors will generally stick with a good company as long as nothing has fundamentally changed, even if the stock price has dropped due to market conditions. Position traders won’t wait for companies to have a better price in the market. They are focused on stock price alone. Price trends that may annoy buy-and-hold investors can be ...