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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