Position trading strategy
About
Position trading is a popular trading strategy where a trader holds a position for a long period of time, usually months or years, ignoring minor price fluctuations in favor of succeeding from long-term trends. Position traders tend to use fundamental analysis to evaluate potential price trends within the markets, but also take into considerations other factors such as market trends and historical patterns.
PROS OF POSITION TRADING STRATEGY
Large possibilities
Position trading allows traders to use high leverage, as the possibility of a mistake is smaller than in conventional trading.
Less stress
One of the biggest advantages of position trading is that positions don't have to be checked on a daily basis.
CONS OF POSITION TRADING STRATEGY
Significant loss
Position trading allows traders to use high leverage, as the possibility of a mistake is smaller than in conventional trading.
Swap
He swap is a commission paid to the broker. If the position is open for a long period of time, the swaps can accumulate a large amount.
