This will be an exciting ActivTrades free webinar with a guest speaker Paul Wallace that will show how to building a position thus potentially increasing your profits.
Why build up a position?
Large financial institutions or big investors that have a vast “wallet” to invest cannot open a position in the market with all that cash at once for various reasons.
Let me show a couple of examples, a particular instrument may not have enough liquidity to be bought all at once. But even though if the financial instrument had enough liquidity to be bought all at once, by the time they bought the last tranche the price would have rallied and was in a position to start selling. That’s why they generally build positions over days to weeks.
But what is position building?
Is a method of opening long or short positions by buying or selling a particular instrument over time until investors achieve their investment goals.
Now building a position can generally occur in two ways. Let’s assume we want to build up a position on the long side.
- Add to winners, buying when the market rises and you are already in profit, also called pyramiding allowing an investor to split up risk and riding trends for longer time.
- Add to losers, buying when the market retraces and you are in loss thus averaging in the initial position.
I strongly recommend and for those interested in watching just click here.
Did you miss it? If so you can still watch for free the replays on the Webinars archive.