Position Trading:
Position trading, also known as 'trend trading', can best be described as a 'buy and hold' method.
Positions can be open for a few days, a few weeks, a few months or longer. They are also held
during periods of minor retracement with the expectation that they will eventually continue trending
in the desired direction.
The Week, Day, and 4hr, time frames are usually the charts used when position trading.
Reasons traders’ trade this style advantages:
•   The most forgiving type of trading
•   Small mistakes are more easily absorbed
•   The size of profit can be huge
•   A high number of position traders become profitable
•   Less stressful than intraday or swing trading
•   Can make larger profits with smaller trades
•   Easier to predict the market and follow the trend
•   Less time consuming than other methods
Reasons why not to trade this style disadvantages:
•   Trades remain open for extended periods of time
•   Have to wait to take profits
•   Patience is a must with position trading
•   There is inherent risk in keeping positions open over night
•   It is quite possible for drastic changes to occur in the market while you sleep
•   Traders can experience significant drawdown
•   Psychologically position trading can be a challenge until you get comfortable with it.
Position Trading Summary:
Position trading can be more profitable than any other type of trading. You will need the most
amount of patience. You get paid to wait with this strategy. With the larger time-frames a trader
will have a better chance to make the most money.
Which style appeals to you?
We would say that all method of trading have their own levels of risk. The way a trader trades
determines the risk. Trading long term with the trend is really the most profitable. Trying to
predict what will happen next hour is much more prone to a variety of fluctuations than what
will happen next week, if a trend is well established.
We feel that a combination of swing and position trading can be a profitable combination.
Throughout the course of a position trade you will need to use swing trading for your add
on trades.
As for which is more or less profitable, in our opinion the fact that day-trading has such a
high failure rate makes the other options more viable and hence, more profitable for the
majority of traders.