Position trading is taking a position in an asset, expecting to participate in a major trend and is the opposite of daily trading, where traders make trades daily and spend hours trading.The main risk of PT is that minor fluctuations, which are commonly ignored, can turn into a full trend reversal and result in a significant loss or drawdown if the trader fails to monitor the position or puts safeguards in place to protect their capital.While this is a danger it also works in the trader’s favor, as the position will also accumulate profit while they’re not looking.The effects of compounding are also negligible with PT, since profits aren’t locked in very often and the account balance doesn’t actually increase until the position is closed at a profit. gaza, Palestinian Territory
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