What Is Position Trading?
Position trading is a long-term trading approach focused on capturing major market trends, not short-term price fluctuations. Positions are held for weeks, months, or even years, depending on how long the broader trend remains intact.
Instead of reacting to daily volatility, position traders base decisions on macro conditions, fundamentals, and high-timeframe technical analysis (Daily, Weekly, Monthly). The goal is simple: stay aligned with the dominant trend and let time do the heavy lifting.
Key Characteristics
Low trade frequency
Minimal screen time
Exposure overnight and on weekends
Strong emphasis on patience and discipline
Pros & Cons
Pros:
Large upside potential
Lower stress
Reduced trading costs
Cons:
Capital locked for long periods
Wider stop-losses
Requires strong psychological discipline
Bottom Line
Position trading isn’t about constant action—it’s about conviction, structure, and patience. Ideal for traders who prefer the big picture over short-term noise.
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