Position trading is a long-term strategy where you hold a stock, currency, or other asset for weeks, months, or even years to capture major trends, ignoring short-term price noise. It sits at the opposite end of the spectrum from day trading and is longer-horizon than swing trading.
Position traders rely heavily on fundamental analysis such as earnings, economic conditions, and industry trends, often combined with technical analysis to time entries and exits.
Because trades are infrequent and held through volatility, the approach demands patience, conviction, and wider stop-losses, but it requires far less screen time and incurs lower transaction costs than active trading. It is well suited to people who cannot monitor markets all day. The main risks are large drawdowns during the hold and missing shorter-term opportunities.