Position Trading
Position trading holds trades for weeks to months, riding long-term trends and ignoring short-term noise.
Position trading holds trades for weeks to months, riding long-term trends driven by rates and policy. It needs few decisions but the discipline to hold through drawdowns.
Position trading is the longest-term style: positions held for weeks to months, driven by macro trends and fundamentals rather than short-term price action. It requires the smallest number of decisions and the least screen time of any active style, but demands the discipline to hold through drawdowns. Position traders care about interest rate differentials, central bank policy and long-term trends.
How It Works
- Weekly and monthly charts, macro fundamentals in the background
- Few entries, held across many sessions
- Swap income or cost accumulates over the holding period
Trading Tips
Carry and interest-rate trends matter more than any single candle
Size for the drawdown, not the entry - weeks of adverse move are normal
A position-trading plan reads more like a thesis than a trade setup
Position Trading Example
Say you short USD/JPY for six months on diverging Fed-BoJ policy, collecting positive carry each night while the pair slides 1,000 pips. One fundamental thesis, one ticket, quarterly reviews. The opposite of entertainment.
How Traders Use Position Trading
Size positions to survive months of adverse wiggle: tiny leverage, wide stops, unleveraged if possible. Add on confirmation, never average down, and exit when the macro thesis breaks, not when boredom peaks.
Related Terms
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