Some people panic every time crypto prices drop, but others remain calm because they understand the direction of the larger trend. They aren’t daily speculators, but rather position traders.

Trading doesn’t always have to be fast. The crypto market is notoriously volatile, but behind the extreme price fluctuations, there’s always a long-term trend that can be exploited.

In bull and bear cycles, patience is crucial for anyone who believes in long-term trading.

The “crypto hold” mindset aligns with the philosophy of position traders, which is to see big opportunities over time, not in fleeting moments.

In the crypto world, patience in trading doesn’t mean standing still, but understanding market direction and knowing when the best time to act.

What Is a Position Trader?

Position traders are a type of trader who holds positions for the long term, which can last for weeks, months, or even years. Their goal is not to seek daily profits, but to capture major trends in asset price movements.

Unlike day traders who monitor charts minute by minute, position traders focus more on long-term trends.

They believe that once a trend is established, it can persist for a long time and provide a significant opportunity for more stable profits.

To determine the best time to enter and exit the market, position traders rely on a combination of long-term fundamental and technical analysis.

They study economic conditions, global price movements, and macro data that can influence asset trends over the long term.

While day traders thrive on daily fluctuations, position traders seek the calm of long-term trends.

Characteristics of a True Position Trader

Being a position trader isn’t just about holding positions for a long time; it also requires a mature mentality and strategy. Here are some key characteristics that distinguish them from other traders:

1. Patience and Discipline

They don’t rush into the market. Position traders prefer to wait for a clear trend to form before taking action.

Even if they have to wait weeks, they patiently wait for the best moment. For them, patience is part of their strategy, not a weakness.

2. Sufficient Capital and Mature Risk Management

Because positions can last for long periods, their stop-losses are usually wider. That’s why position traders need sufficient capital to withstand price fluctuations without stress.

They know that short-term volatility is just part of the journey to a major trend.

3. Macro Thinking

Instead of focusing on daily candlesticks, they pay more attention to the direction of the global economy, interest rates, monetary policy, or global commodity trends. All of this helps them gauge the long-term market direction.

4. Not Easily Affected by FOMO

When the market fluctuates wildly, position traders remain calm. They know that opportunities will always arise, so they don’t panic even when prices fluctuate rapidly. For them, missing a single moment isn’t a problem. The important thing is to stay on track with their long-term strategy.

For example, when many people panicked during the 2022 bear market, position traders started accumulating Bitcoin to hold until the next halving. Not because they were reckless, but because they saw a big trend forming behind the market panic.

Position Trader Strategy in the Crypto World

Becoming a position trader in the crypto world means playing the long-term game, not chasing quick profits, but understanding the broader market direction. The key isn’t how often you trade, but how long you can patiently hold a position.

The first step is to choose an asset with strong fundamentals, such as Bitcoin, Ethereum, or a crypto project with a solid ecosystem and real adoption.

These assets tend to have better resilience during both bull and bear market cycles.

Next, use weekly or monthly charts to read trends. Long-term charts help avoid false signals from often misleading daily fluctuations. From here, the broader trend will become clearer.

Then, combine fundamental and technical analysis to strengthen your decisions. From a fundamental perspective, pay attention to project adoption, roadmaps, and policies or regulations that could affect the asset’s value.

From a technical perspective, use indicators such as the 200-day moving average (MA200), long-term support-resistance areas, and the weekly RSI to gauge trend momentum.

Next, enter gradually or use a  DCA (Dollar Cost Averaging) strategy. This strategy is suitable for those who don’t want to buy immediately, so the risk of price fluctuations can be more manageable.

Finally, set realistic targets and stop-losses. Don’t be tempted to change your strategy every week just because the price moves up or down. Consistency in your plan is far more important than reacting quickly to market volatility.

Pros and Cons of Position Trading

Position trading is like a sailor waiting for a strong wind to come, which, when the timing is right, can yield substantial returns. But, like any long voyage, this strategy also has its challenges.

On the plus side, position trading offers peace of mind because you don’t have to stress about monitoring prices daily. This strategy is suitable for busy people who still want to be active in the crypto world without having to sit in front of a chart constantly.

If the long-term trend direction proves correct, the potential returns can be substantial, even surpassing short-term trading styles.

However, behind this peace of mind, there are also risks. Position trading requires strong capital and a high level of patience because positions can last for months. Misreading the trend direction can leave a position stuck for a long time, waiting for the price to recover.

Furthermore, because they focus on major trends, they sometimes miss short-term momentum that could potentially generate quick profits.

Real-Life Examples of Position Traders in Crypto

Imagine a trader who bought Bitcoin in 2020, when the price was still around Rp150,000,000 per coin. Instead of selling quickly when the price rose slightly, he chose to hold and trust in the larger trend that was forming.

A year later, at the peak of the 2021 bull run, Bitcoin’s price reached Rp950,000,000. His profits came not from daily speculation, but from faith and patience in holding his position in the long-term trend.

Another example is a trader who began accumulating Ethereum during the 2022 bear market when many people were selling out of panic.

He understood that the DeFi and smart contract ecosystem still had a bright future. When the DeFi trend began to rise again the following year, its value skyrocketed.

It wasn’t because of luck, but because they understood the direction of the larger trend and patiently waited for the right momentum to bear fruit.

Mindset & Risks to Understand

Becoming a position trader isn’t a shortcut to riches. The mindset that needs to be instilled is consistency and patience, not the euphoria of chasing quick profits.

In a long-term strategy, big results come from calm and disciplined decisions, not from fleeting luck.

However, there are psychological risks that often arise. One of these is overconfidence after a big successful position. Without regular evaluation, small mistakes can be repeated and lead to major losses.

Therefore, it’s important to always record every step in a trading journal. From there, you can learn to recognize your own decision patterns, strengths, and weaknesses.

As the saying often goes in the crypto world, “Blockchain is transparent, but trading results are still determined by how you manage your emotions.”

Conclusion: Patience Doesn’t Mean Passiveness

So, that was an interesting discussion about Position Trader: A Long-Term Strategy for Hold Enthusiasts, which you can read in full at the INDODAX Academy crypto academy.

In conclusion, position traders are not market spectators, but players who know when to wait. They’re like active investors, who don’t sit around aimlessly, but patiently wait for the best moment to act.

This strategy is suitable for those of you who want to grow with the market, understand the overall direction of crypto, and not just chase misleading daily candlesticks.

If you’re a fan of holding, perhaps it’s time to learn to become a true position trader.

By the way, in addition to gaining in-depth insights through various popular crypto education articles, you can also broaden your horizons through a collection of tutorials and choose from a variety of popular articles that suit your interests.

Besides updating your knowledge, you can also directly monitor digital asset prices on Indodax Market and stay up-to-date with the latest crypto news. For a more personalized trading experience, explore Indodax’s OTC trading service. Don’t forget to activate notifications so you don’t miss out on important information about blockchain, crypto assets, and other trading opportunities.

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FAQ

1.What is a position trader?
A position trader is a trader who holds positions for a long period of time to capture major asset price trends.

2.How long are positions typically held?
Usually, between a few weeks and years, depending on the strength of the trend and profit target.

3.Is it suitable for the crypto market?
It is suitable, especially for blue-chip assets like Bitcoin or Ethereum.

4.What are the main risks of position trading in crypto?
Extreme volatility and misreading long-term trends can lead to long-term positions being held.

5.Do position traders also need technical analysis?
Yes, but combine it with fundamental analysis for stronger decisions.

Author: Boy