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I like Josephine and the nickname Posy. However Posy might be a little childish for the teen years and older. I think if name a child with a long name (like Josephine), the child eventually gets to pick their nicknames and what they're called. I also think Josephine doesn't necessarily need a nickname.
To sum it up, Josephine and Posy are fine, but your kid may chose some other form of Josephine to go by.