Position Trader

Position Trader - Librarian delver
Position Trader

A position trader can be defined as one who either buys or sells contracts and holds them at least overnight. Position traders usually hold positions for a few days, weeks, or even for months.

Trading expenses and analysis techniques differ according to trade duration. Position traders are more concerned about long-term trends and believe that they can make a profit by waiting for major market movements.

Fixed costs are slightly low for position traders and they are likely to use long-term technical analysis for evaluating trade opportunities. Position trading is safer than other types of trading, mainly because position traders are not pressed for time and can stay in the trade to earn more or to minimize losses.

Futures trading involves risk and may not be suitable for all types of investors. Several factors such as market conditions and seasonality effects affect the timing of trading. Seasonality is an important factor for position traders to take into consideration.

Since position traders stay in the trade longer, they can better cope with any seasonal variations. Generally, day trading and position trading have a great deal in common. Technical analysis and fundamentals help improve both kinds of trading.