Position trading is a longer-term trading strategy that allows you to capture profits by holding positions for months or years.
As a position trader, you are ignoring the very short-term price action movements and are taking a long-term view.
A lot of traders think of positional trading in the same way they do buy and hold investing. However, the main difference between the two is that you can both profit from price moving higher and lower with positional trading.
Because your hold time is longer with position trading, you have the ability to grab bigger gains. On the flip side, however, that also comes with more risk.
Position traders will normally use a blend of technical analysis and fundamental analysis, and as we discuss in this post, you can use many popular trading strategies to make position trades.