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<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Intraday trading is based on the price fluctuations due to that particular day’s global market trend, FII activity, market sentiment etc…</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Whereas positional trading requires analysis of previous price movements of a stock ranging from a few days to weeks or even months. Hence, it is not recommended to apply positional analysis methods in intraday trading.</p>In intraday analysis we have to go with the mass to attain gain its based upon sentiment and top down approach,where else In positional analysis intraday price fluctuation is not taken into account when you analysis the company minimum 2 years and its an bottom top approach.
Positional analytical method is a bottom top approach where the stocks are picked and then analysed based on the past data. Which is a time consuming task compared to the intraday which is a top bottom approach by identifying the best performing stocks based on the market sentiment which needs a quick decision.
Positional analytical methods are based on demand and supply whereas intraday analysis is based on market sentiment.
Intraday price movement is witnessed mainly due to market sentiment and analysis is done using the top down approach.
Positional analysis is done considering several other factors to predict the price movement of a stock, the analysis method followed here is the bottom up approach. The stock is selected and chart is plotted by taking various data and the price movement is predicted. These may or may not work for a particular day where the sentiment prevailing in the market might be different when compared with the stock that we have analyzed, so it is not advisable to use positional analysis for Intraday even-though sometimes it might be right as well.
In Intraday the analysis is done to to predict the target price that has to be achieved in the same day, whereas in positional analysis we expect the price movement to happen over a period of time i.e, a week or month.
In Intraday we need to trade along with the trend of the prevailing market.
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