Position trading is the longest term strategy and the trades are held for anywhere from a few days to several years.
Position traders ignore short-term price movements in favour of pinpointing and profiting from longer-term trends. These traders know that the fundamentals are the predominant factor when analysing the markets and therefore make their trading decisions based on them.
This kind of forex trading is reserved for the most patient traders out there.
The ultimate zen masters.
You might be a position trader if:
- You are super patient and calm and collected (hats down to you, my friend).
- You have a great understanding of fundamentals and know how they affect currency pairs in the long run.
- You don’t mind waiting for your grand reward but you also have thick skin and can weather any retracements along the road.
You might not be a position trader if:
- You like seeing your results fast.
- You don’t have a good understanding of how fundamentals affect the markets in the long run.
- You don’t have enough starting capital.