Forex position trading in my view is a kind investment strategy rather than a forex trading strategy. The reason why I feel as an investment plan because in forex trading the actions are faster and at the same time the actions last only for short time frames.

In position trading, a trader actually opens a position depending upon a trading strategy but the exit position for that trade will last for a long period of time. The position traders always look for long term profits rather than looking for short term profits.

In general, the position traders keep the trades open for week’s time and even for months of time targeting for higher profits. I found that most of the position traders keep their trades open based on some of the monthly charts or weekly chart patterns, and obviously it take the same time to develop and will turn to huge profits. In the charts, they always look for the overlying major trends of the currency pair. They never look for the shorter or the temporary movement in the market which is entirely different from the long term trade.

A position trader is always a safe trader. Since they open the trades for a longer period of time depending upon a trading strategy, the possibility that they loose money is really very less. In my point of view, if you had a good trading strategy for position trading, you will always win the market with huge profits and there will never be a chance that you will go into loss. A real smart trader will always go for position trading rather than going for day trading because they know that they will surely make profits.

However, every trading style is profitable if they can be traded with a well planned forex trading strategy. It is just a matter of fact that how comfortable you are with the style you trade with.

A forex broker also plays an important role in this type of trading. As you keep the trades open for longer period of time, you should be aware of the rollover cost of the trade. This is because the opened trade may sometimes go into negative side too. In that case you have keep track of your rollover cost of the trade and the cost of keeping the long term trade open. As the pips will be calculated on the basis of rollover cost, the rollover cost of the trade is required to be added to the profit target.