It is common trading term also known as position trading in which trader hold a commodity, stock or security for a long period of time with the expectancy that it will rise in value. The average time frame for holding the position can be measured in weeks to month or even years. In long term trading, traders are less concerned with news of day and short term fluctuation of the market. They are considered trend believer, their primary believe is that once trend starts, it is expected to continue. They are also known as passive investors who hold their positions for long period of time.
In long term trading, investors may use fundamental analysis or technical analysis or combination of both to take a best trading decision. They also rely on general market trends, macroeconomic factors and historical patterns to enter in trade which reach their desired outcome. In long term trading strategy, successful traders identify accurate entry and exit levels and have plan to control risk via stop loss level.