“Position trading is too slow for real profits.” It’s a belief often held by impatient traders or those drawn to the adrenaline of intraday moves. At first glance, position trading — holding trades for weeks, months, or even years — may seem too passive to be truly profitable. But in reality, position trading has been one of the most consistently profitable styles over decades, especially for those who understand how to combine macro trends, timing, and compounding. Let’s break down why position trading isn’t too slow — and may, in fact, be the fastest path to sustainable profits.

Compounding works best over time

Position traders allow time to do the heavy lifting. Rather than hunting for dozens of short-term wins, they let macro trends compound returns.

Examples:

• A 1,000-pip move in GBP/JPY over three months
• A long-term downtrend in EUR/USD driven by rate differentials
• A commodity rally sustained by inflation or supply shocks

One or two well-timed position trades can outperform dozens of smaller, high-frequency trades — with far less stress and fewer costs.

Wider targets mean higher reward-to-risk

Position trading focuses on macro-driven setups with wide stop-losses and large take-profit zones. This leads to:

• Fewer trades
• Larger R-multiples per trade (3:1, 5:1, or more)
• Less screen time
• More time to evaluate and adjust

The power of position trading isn’t in speed — it’s in scale and consistency.

Low frequency reduces overtrading and costs

Day trading and scalping often rack up:

• High commissions and spreads
• Slippage from fast execution
• Emotional fatigue from constant decision-making

Position traders trade less often — and often with higher confidence. This approach reduces friction and errors, allowing profits to build without daily pressure.

Macro trends provide more reliability

Position traders align with large-scale economic, monetary, and geopolitical forces. These trends:

• Persist longer than intraday noise
• Offer clearer directional bias
• Are supported by data and policy outlooks

Instead of reacting to every tick, position traders wait for high-probability setups with fundamental backing — then ride them with patience and discipline.

Drawdowns are controlled with position sizing

While holding trades for weeks may expose capital to longer periods of risk, position traders use:

• Conservative position sizing
• Wide stops in proportion to their account
• Diversification across uncorrelated assets

This ensures that even slow trades don’t become risky trades.

Some of the world’s best traders are position traders

Legendary names like:

• George Soros
• Stanley Druckenmiller
• Paul Tudor Jones
• Ray Dalio

—all made billions through macro and position trading. They didn’t scalp for pips — they built portfolios based on conviction and long-term views.

Conclusion: Is position trading too slow for real profits?

Absolutely not. Position trading may be slower in pace, but it is often faster in cumulative results due to larger gains per trade, reduced costs, and lower stress. The idea that speed equals profitability is a myth — clarity, timing, and patience are what truly drive success.

Build a powerful, macro-aligned position trading strategy in our expert-led Trading Courses designed for long-term traders who want to profit from the big moves that really matter.