Two Popular trading strategies

Momentum

Momentum trading is much less concerned with ‘precise’ entries and more with the force and continuation of the move. Traders are not looking for the price to pull back or break out from any specific price, but merely to start moving more or less in the direction of the prevailing trend.
This type of trading is fundamentally based but also relies heavily on indicators such as moving averages and oscillators to give trading signals.
Traders will use momentum based strategies when they perceive a long term move to be taking place on the asset that they are trading. For example, if there is a significant change in the fundamentals of a nation that will result in an interest rate change, this will cause investors to act and begin buying or selling the currency of that nation in line with those changes. Other examples include geo political events that remain in place for many months and sometimes even years.
During these significant shifts, professional traders will be looking to trade these currencies over the long term, often holding their positions over a period of weeks and months.
Because of the longer term nature of this strategy traders are not as concerned about entry points and simply wait until minor technical analysis gives them an opportunity to profit from the move. A popular indicator for this type of trading includes the 200 period moving average, and very often traders will look for price to break above or below this moving average in line with the anticipated move, at which point they will enter the market and hold their positions.
Exits are generally governed by fundamentals in a similar way to entries, with traders watching the economic and geo political events very closely before deciding which trading approach they will take and how they will manage those ongoing positions.

Position trading

Position trading takes the momentum style of trading and further eliminates the importance of the entry. The primary concern of the trader here is to be in the market when the price does eventually make its move. Traders often build their position into the market over a period of days or weeks as the price moves. The main component of this strategy is a confidence in the prevailing fundamental conditions driving the price, and the anticipation that the market will eventually move in the desired direction.
This sounds extremely similar to the momentum style of trading but the key difference is the approach to entries that position traders very often take. When the market is expected to move in a single direction over a sustained period of time, traders will very often begin trading that asset almost immediately in extremely small sizes.
The reason for this is because during the long term move there will almost certainly be short term retracements and temporary adjustments to sentiment. These events will provide traders with multiple opportunities to trade the asset as it pulls back against the overall move.
These will be used as opportunities to trade at a better price and build up their position in the market while these temporary events cause confusion and loss of confidence. Position traders are effectively taking advantage of human emotions which causes most traders to liquidate positions and take profits during short term market moves against the prevailing trend.
Because the market moves in this way, traders will try and add to their positions as the price gives better prices so that they can gradually build up a better average entry price. This also means that their initial positions may enter sustained periods of draw down, which is why each individual position is usually extremely small in relation to the amount of capital they are trading.
Position trading should only be carried out on assets that have a very clear fundamental sentiment that is likely to last over the approaching weeks or months. Having the confidence to not only hold your position, but add to it is the key to this style of trading.