What is Position Trading?

The longest-horizon style: holding for weeks to months to ride major trends, guided by fundamentals and weekly charts.

Position trading is the longest-horizon active trading style, with positions held for weeks to months to capture major trends rather than individual swings. Analysis starts on the weekly and daily charts and leans on fundamentals — interest-rate cycles, economic momentum, long-term supply and demand — with technicals used mainly to time entries into the larger story. Stops are measured in hundreds of pips, so position sizes are small, and trades are few: a position trader might take only a handful of trades in a year.

The style trades screen time for conviction. Day-to-day noise is irrelevant, but the trader must sit through deep retracements — often weeks of open profit evaporating — without abandoning a thesis that remains valid, which demands genuine confidence in the analysis and sizing conservative enough to make the drawdowns bearable. Swap costs compound over months and belong in the trade's math from the start. For patient capital, it is the style closest to investing while still being trading.