Position Trading
Holding trades for weeks to months based on longer-term trends. Lower frequency, bigger targets, less screen time.
Position trading is a longer-duration style where traders hold positions for weeks to months, aiming to capture major directional trends. It sits between swing trading and long-term investing.
Position traders rely on a blend of fundamental analysis (earnings trends, sector outlook, macro backdrop) and longer-timeframe technical analysis (weekly/monthly charts, major moving averages). Trade frequency is low, so each setup must have a strong conviction basis.
Overnight risk is magnified over longer holds — gaps, earnings surprises, and macro events can all affect a multi-week position. Position traders typically use wider stops and smaller position sizes relative to their account than day or swing traders.