Position trading: how do you hold for months?

Position traders hold through daily noise, weekly reversals and every headline, trusting a longer thesis. The analysis is slower, the stops are wider, and the psychology is a different sport entirely.

Position trading: how do you hold for months? — drawdown and recovery diagram
An equity curve during a drawdown and its recovery

How do you do it?

  • the time frame and thesis that justify the hold
  • how you review an open position over months
  • the drawdown you accept on the way
Position trading: how do you hold for months? — risk-reward diagram
A risk-reward ratio of 1 to 2

The trading styles guide and drawdown guide cover the two hardest parts.

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