Understanding the Differences Between Day Trading and Position Trading
Day trading and position trading are two of the most common trading styles employed by traders around the world. While both styles aim to make a profit by trading assets, they differ significantly in terms of their approach, time frames, and level of risk. Day trading is a short-term trading style where traders buy and sell assets within the same trading day, while position trading is a long-term trading style where traders hold a position for an extended period, from a few weeks to several months. Day traders aim to make a profit from small price movements of high volatility assets, while position traders aim to capture significant price movements in the market by trading low volatility assets. In this article, we will explore the key differences between day trading and position trading and help you understand which style of trading may be more suitable for you.