A position trader is a Forex trader who will hold a position in a trade for a long period of time. The “holding” period can last anywhere from hours to months to even years! This kind of Forex trading is typically used only by extremely patient traders and requires a good forex education and understanding of the fundamentals. My trading education and experience comes from The Apiary Fund and I am so thankful for my education because without having a thorough education under your belt.
The market will seem like a completely overwhelming task. Fundamentals command the long-term trends of currency pairs and it’s important that you have a clear understanding of how economic data affects countries and their future outlook. Forex position trading requires the trader to have pretty thick skin because it’s more than likely that your trades will go against you at some point.
You will most likely experience bulky swings and you have to prepare yourself and have trust in your strategy and analysis to remain calm and focused during these positions. The advantages of position trading appeal to a pretty wide variety of traders, such as people who don’t have crucial time to trade on a daily basis and enjoy the amount of time engaging with the market that they do. As a position trader, you will spend less time in front of the screen, monitoring the market. Another major advantage is if you’re in the right place, you can catch major moving waves.
The Apiary Fund allows you to truly explore what type of trader you are because it might surprise you that what you may assume will work best for you and your lifestyle, might turn out to be you’re intrigued in a completely different trading style and technique. Taking a position for a considerable period of time is a huge commitment. It’s common for traders to get into their heads and making some unintended moves, causing early exits and compromise your entire system and or strategy.
Position trading quite simply is the opposite of day trading. Day trading makes trades every day and spends hours tweaking and monitoring trades and monitoring the market. Swing trading is much less time-intensive than day trading, and this is why it’s recommended exploring what interests and what works for you and your lifestyle in the trading community. Some cons for position trading are the need for large directional moves, a lot of patience, and acceptance of a longer learning curve. You will make a lot fewer trades in a year than you would if you were trading as a day or swing trader, which means you will have less overall experience.