What is Position Trading in Stocks?

Position trading is the longest-term strategy where stock positions are held for anywhere from a few days to several years.

How Does Position Trading Work?

Position traders ignore short-term price movements in favour of profiting from price movements over several weeks, months and even years.

Position traders hold their positions for the longest time among all trading styles.

Position traders focus on the long-term performance of an asset. These traders know that the fundamental analysis is the dominant factor when analysing the markets and they, therefore, make their trading decisions based on them.

The goal is to identify trends in the prices of stocks, which can continue for relatively long periods of time, and earn profits from such trends.

Generally speaking, position trading provides lucrative returns. 

Position traders are closer to long-term investors in comparison to any other trading style. 

This kind of trading is reserved for the most patient traders out there.

The ultimate zen masters.

🙂 You might be a position trader if:

  • You are super patient and calm (hats down to you, my friend).
  • You have a great understanding of fundamentals and know how they affect currency pairs in the long run.
  • You don’t mind waiting for your grand reward 

☹️ You might not be a position trader if:

  • You like seeing your results fast.
  • You don’t have a good understanding of how fundamentals affect the markets in the long run.
  • You don’t have enough starting capital.