#TradingTypes101

Position trading is an active trading strategy that involves buying and selling financial products over weeks to months. It’s a type of medium- to long-term trading approach designed to ride upward and downward market trends over time.

The typical position trader seeks the best opportunities and doesn’t shy away from ambitious goals. If their analysis is correct, they aim to generate substantial profits.

Position trading closely resembles the buy-and-hold investing strategy with notable differences. For one, while buy-and-hold investors typically don’t bet against the market or a specific investment, position traders can go long and short to ride both up and downtrends.