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Why Use Position Trading Stocks for Extra Income?

Why Use Position Trading Stocks for Extra Income?
September 22, 2021 Martha Stokes CMT

Why Use Position Trading Stocks for Extra Income?

Low-Risk Entry with a High Profit Target

When someone thinks about trading stocks, either Day Trading or Swing Trading pops into their head most of the time. However, many people do not have the time or the desire to sit at a computer or even on their phone trading stocks every day of the week. There is a better and easier way to make extra income during your retirement, if you are a stay-at-home parent, or you just enjoy trading stocks but don’t want to make it a full-time job.

See the chart example below, which is a monthly view chart.

Above is a good example of a stock that had a Position-Style entry in the summer. An entry between $45–$48 provided a low-risk entry with a high profit target gain potential. The exit was as Stock Market High Frequency Traders HFT and speculators drove the price up to $117. This stock more than doubled its price in under 6 months. A Position-Style stock trade is often held between 2–6 months.

Since then, it has been showing signs of weakness and a rising risk of a potential top. This stock could also have been sold earlier after the gap caused by High Frequency Traders HFT.

What you are about to learn is a Trading Style that actually makes significantly higher profits than Day Trading or Swing Trading and requires only a few hours a week.

This means that instead of spending your retirement or your day on the computer, you can be enjoying life more.

It is called Position-Style Trading. At TechniTrader, we do not teach what is often called “positional” trading or other misused terms, but a buy to hold for a few weeks to a few months. This is in order to take advantage of the slow and steady Dark Pool Quiet Accumulation which consistently drives stock prices upward until High Frequency Traders HFT take over and the stock rises to an extreme high.

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This steady incremental buying offers the lowest-risk entries with excellent profits over a timeframe that is between a swing trade and a long-term investment.

TechniTrader Position-Style Trading is easy to learn, and most beginners can start trading stocks far more rapidly with this style than with Day Trading. Position Traders tend to have the kind of success that most beginner Day Traders only dream about. It is also a good way for people who have been strictly long-term investors to transition to shorter-term trading.

Setups for Position-Style Trading are simple, straightforward, and do not require extensive technical expertise. Summer is an ideal time for Position-Style Trading, as the giant Buy Side Institutions tend to start their stock Dark Pool Quiet Accumulation for the fall activity during the quieter summer months. There is less volatility and speculation in the summer, when many stocks are developing bottoms after a Market Correction.

The technique for Position Trading is to identify stocks coming out of bottoms or in platform trendline patterns with Dark Pool footprints indicating that Dark Pool Quiet Accumulation is underway. The platforms that Dark Pools create with their controlled and bracketed orders offer a strong support level, low risk, and simple buy entries. Position Trading profit stops protect the profit as the stock moves up. Position Traders only need to monitor these trades once a week, which is ideal for busy people and active retirees.

Summary

Position-Style Trading is taught exclusively at TechniTrader using platform trendline patterns with Dark Pool Quiet Accumulation Patterns. This simpler style of trading is a great choice for new traders, retirees, stay-at-home parents, investors with smaller capital bases, and anyone who doesn’t want to spend all day in front of a computer. Position Trading stocks with StockCharts.com can be very lucrative with the right education that gives you a solid trading methodology, a leading set of indicators and scans, and ongoing support.

Go to the StockCharts.com Users Learning Center and access a webinar on Exploit the High Frequency Traders, Momentum Power Trading Explained, and the Trade Management Planner.

StockCharts.com Tools – TechniTrader has created chart templates, custom trading style scans, and technical indicator setups for StockCharts.com Users.

Trade Wisely,

Martha Stokes CMT

TechniTrader technical analysis using a StockCharts chart, courtesy of StockCharts.com

Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses

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Martha Stokes, CMT is co-founder and CEO of TechniTrader. She is a retired professional Buy-Side Analyst and was awarded the Chartered Market Technician designation for her thesis, "Cycle Evolution Theory." Martha is a passionate teacher of the financial markets and a prolific writer, having created over 40 stock, option, and financial market courses.