Every trader is unique. Each has their own intelligence level, instinct, style, and approach in the Forex market. In order to survive and earn substantial profits, you have to employ a variety of strategies. In this article, we will discuss the 4 types of Forex traders. Read on to see which one suits you best.
If you want fast-paced trading, the scalping strategy fits you. A scalper holds onto their trades for a few seconds to a few minutes at the most during the busiest time of the day. Their main goal is to amass small amounts of pips as frequent as they can. If you are a newbie, this trading style may not be suitable for you as it requires deeper market knowledge and assessment. A reliable, solid and fast trading platform is also needed to keep up with the volatile market.
Trading for short-term results, a day trader starts trading from the beginning of the day and finishes with either a profit or loss. A day trader does not hold his/her positions overnight.
This type of trader holds his/her positions for several days. The opposite of a day trader, a swing trader waits longer to receive a return. Traders under this type of hope for a change and direction and swing back the other way using technical analysis tools.
A position trader waits for the longest to receive a return. It takes them days, weeks, months, and even years to close their positions. Positions traders, who use a combination of fundamental and technical analysis, concentrate on long-term opportunities.
When choosing your trading style, consider your intelligence level, instinct, and approach in the FX market. Scalping may not be good for you if you are a beginner considering its fast-paced nature. You may opt for a day or swing trading. To get the feel of each style, use a demo account for a risk-free experience.