The term position trader refers to a trader which uses a buy and hold strategy rather than a day trading or other short-term trading strategy.
Position traders aim to benefit from increases in the value of assets over the long term by holding shares in spite of dips in their values. They believe that the value of the assets which they invest in will be higher in the future than at the present. Rather than attempting to profit off fluctuating rates, position traders buy assets and hold them, sometime for as long as several decades.
Compared to frequent traders, position traders are less heavily impacted by brokerage fees because they do not buy and sell securities as frequently. Custodial fees charged by custodian banks for the safekeeping of securities or assets, on the other hand, are important to position traders because they are time-based fees. For this reason, it is important for positions traders looking to buy and hold securities to compare the custodian fees charged by brokers. This can be done using the interactive online trading comparison on moneyland.ch.
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