TRADING STYLE - POSITION TRADING (LONGS)
The principal difference between a position trader and a swing trader is the length of time a market position is held – though the terms are often used interchangeably. Position traders typically buy and hold a stock for up to ten days. Some might argue that a person holding onto a stock for ten days technically cannot be called a day trader, but it must be conceded that he or she is nevertheless a very active trader, distinguishing them from an actual investor. In fact, many traders prefer the term "active trader" to the somewhat stigmatized and more uncomplimentary term of day trader.
Position trading offers the same advantages and similar market risk as swing trading. Traders utilizing this style might be technicians that buy a stock and wait for a technical pattern to develop, or they could be fundamentalists that keep a position open just long enough to get the market impact of a news-driven event. If you're reluctant to start at the 'deep end,' this type of day trading might be a great way to get your feet wet.
