What is position trading?
Position trading is a long-term strategy where traders hold positions for weeks, months, or even years - aiming to catch large market movements. Unlike day traders or swing traders, position traders focus on the big picture, ignoring the noise of daily price fluctuations.
Key traits:
- Hold few trades with strong conviction
- Rely on weekly/monthly charts
- Often based on fundamentals, macroeconomic trends, or solid technical signals
- Minimal screen time - emphasis is on the larger narrative
Position traders aim to ride major trends and capture the bulk of the move. Patience and conviction are their greatest advantage - and also their greatest risk.
Some of the biggest trades in history - like Michael Burry's short on subprime mortgages - were position trades.#StrategicTrading