Position Trading in Australia: Strategies, Pros & 2025 Policy Impacts

Position trading has re-emerged as a favourite among Australian investors seeking to ride the big market waves, not just the daily ripples. With 2025 bringing new tax tweaks, regulatory shifts, and volatility across equities and commodities, understanding how to succeed as a position trader is more important—and more lucrative—than ever.

What is Position Trading? A Strategic Overview

Position trading is a style of investing that focuses on capturing substantial price moves by holding positions for weeks, months, or even years. Unlike day traders, position traders aren’t glued to their screens for minute-by-minute market action. Instead, they rely on fundamental analysis, macroeconomic trends, and technical signals to identify high-potential assets and let time do the heavy lifting.

• Timeframe: Trades are typically held from several weeks to years.
• Goal: Capture major market moves, not small fluctuations.
• Approach: Combines technical analysis (trendlines, moving averages) with macroeconomic and company-specific research.

This approach suits investors who prefer a ‘set and monitor’ rather than ‘set and forget’ mindset—balancing patience with vigilance as market conditions evolve.

2025: New Rules and Opportunities for Position Traders

Australia’s investment landscape in 2025 is markedly different from just a few years ago. Several policy changes have direct impacts on position traders:

• Capital Gains Tax (CGT) Updates: The federal government’s 2025 budget increased the CGT discount for assets held over two years, incentivising longer holds. This move is designed to promote capital stability and reduce speculative churn in the ASX.
• ASX Volatility: With ongoing resource sector disruptions and tech sector growth, the ASX 200 has seen wide swings—creating both risk and opportunity for position traders willing to weather short-term storms for long-term rewards.
• Green Energy Boom: Renewables and critical minerals are headline sectors, with government grants and tax breaks drawing investor attention. Position traders have flocked to lithium and hydrogen plays, riding multi-month trends as Australia cements its global green supply chain status.

For example, in early 2025, investors who entered Pilbara Minerals (PLS) after the January dip and held through to May saw gains of over 30%, thanks to surging lithium demand and favourable policy signals.

Key Strategies for Successful Position Trading

Position trading rewards those who blend discipline with informed risk-taking. Here’s how Australian investors are adapting their strategies for 2025:

• Macro Trend Analysis: Position traders follow Reserve Bank of Australia (RBA) rate moves, fiscal policies, and global economic shifts. For instance, anticipated rate cuts in Q3 2025 are already shaping bullish positions in property trusts and infrastructure stocks.
• Technical Confirmation: Long-term moving averages (e.g., 100-day, 200-day) are essential for timing entries and exits. Many traders use breakout signals from consolidation patterns, then ride the trend until key support or resistance levels are breached.
• Risk Management: Stop-loss orders and portfolio diversification remain critical. With increased market volatility, seasoned position traders are tightening risk controls and reducing overexposure to single sectors.
• Tax Efficiency: The new CGT rules mean holding for at least two years can significantly boost after-tax returns, making patience more profitable than ever.

Real-world example: A Sydney-based position trader bought shares in Fortescue Metals (FMG) in September 2024, citing both technical breakouts and rising iron ore prices. By holding through short-term corrections and monitoring policy updates, they secured a substantial gain by mid-2025, far outpacing the returns of frequent traders who exited early.

Is Position Trading Right for You?

Position trading isn’t about chasing every market move—it’s about conviction, research, and the discipline to hold through inevitable volatility. With 2025’s regulatory shifts and sector rotations, the rewards for patience and insight are bigger than ever for Australian investors.

If you’re ready to look beyond daily headlines and build wealth over months or years, position trading could be your edge in a rapidly changing market.