Long-term trading refers to a trading approach in which each position remains open for more than 2-3 weeks. This strategy is generally based on extended market trends or larger economic cycles rather than shorter-term price movements. Traders often rely on fundamental analysis and larger economic indicators for decisions, aiming to benefit from sustained price changes over a more extended period.
Long-term trading is common among investors who prefer to minimize frequent trading and potential market “noise,” focusing instead on larger profits from significant market movements.