5.22What is positional trading?
1What is it?
Positional trading means holding a position for weeks to several months to ride a bigger trend.
2Why does it exist?
It sits between swing trading and long-term investing, often combining technical timing with some fundamental reasoning.
3Diagram
| Intraday | Swing | Positional | |
|---|---|---|---|
| Holding | Minutes–hours | Days–weeks | Weeks–months |
| Screen time | Very high | Medium | Low |
| Main tool | Intraday charts | Daily charts | Daily/weekly charts + fundamentals |
| Tax | Business income | STCG | STCG (or LTCG if >12 m) |
4Quick revision
- Weeks to months.
- Rides bigger trends.
- Less screen time than swing.
5Knowledge check
Q1. Positional vs swing: which holds longer?Show answer
Positional.
Q2. Which uses weekly charts more?Show answer
Positional.
Q3. Can positional trades become LTCG?Show answer
Yes, if held more than 12 months.