Position Trading

Strategy #1: Long-term buy-and-hold.

Buy and Hold?
The buy-and-hold-“and-forget” strategy employs a mentality that suggests price movements over the long term will outweigh the price movements in the short term and, as such, short-term movements should be ignored. It isn’t exactly active trading. Position trading, or buy-and-hold trading, is a popular strategy employed typically by folks in managing their 401(K) plans. You buy and hold for 3 years, 7 years, if not even 15 or more years. The strategy works pretty well over such a long period of time.

It is perhaps a bit too early to say that Bitcoin will be successful as a new asset class to warrant your unattended trust. Microsoft and Amazon, for example, have been around by now for a while and are fairly safe stocks to buy-and hold. Exchange-traded funds (ETFs) mirroring indexes like the S&P 500 are very popular with many folks who do not consider themselves particularly investors and certainly not traders.

Cryptocurrencies need to be watched at least weekly as the whole crypto space is still evolving and being eyed for regulation. You need to be prepared to act fast.

Who’s that?
Position trading might sometimes feel and look like a traditional buy-and-hold strategy. For long periods during 2015 to 2017, bitcoin rose fairly steadily compared to the crazy spike in price we saw in December 2017.

If you had bought a bucket of bitcoins in early 2015 and just held on to them until late in December 2017, you possibly could now be lounging on a sunny Hawaiian beach zipping pina coladas or manhattans for the rest of your life.