What type of forex trader are you?

What type of forex trader are you?
Published: 19 February 2019 (2536 Views)
Forex traders come in all shapes and sizes. Everyone has their own unique style of trading forex, but it is possible to discern some similarities between successful traders.

There are some distinctive trading styles. Many forex traders are amateurs, playing with a demo account from a broker like CMTrading for their own amusement whereas the cream of the crop are consummate professionals whose livelihoods depend on making successful trades. For the purposes of this article, we are going to look at the different types of professional or semi-professional forex traders.

See if you spot your own trading style from the list below.

Day Trading
Day traders make short-term trades. They open and close a trade in a single day, which saves them money on broker fees (brokers usually charge a fee when a trading position is left open overnight). Day trading is ideal if you prefer to trade forex during the day and keep your evenings free for other activities. It won't work for you if you have a day job to do - unless your boss is super understanding!

When day trading, begin your day by analyzing the markets and deciding which way your chosen currencies are likely to move. Open positions and then monitor them throughout the day.

Position Trading
Position trading is a long-term forex trading strategy. Unlike day traders, position traders hold on to their trades for months or even years. To be a position trader, you need oodles of patience and a good understanding of underlying market fundamentals. You are the type of person who can comfortably predict which way the markets will move in the next year.

Bear in mind that you will need a significant amount of trading capital to be a position trader. Therefore, position trading is not for amateurs. But if you are calm, considered, and willing to play the long game, position trading is perfect for you.

Scalp Trading
Scalp trading is high octane forex trading. Scalp traders make fast decisions and only open trades for a few moments. Their goal is to make small profits when the markets are busy. Scalp trading requires tremendous focus and you will have to be prepared to spend your trading day staring at charts.
 
Successful traders don't dither over trades. They have the cool head needed to make instant decisions and carry them out. Scalp trading is not for everyone, but if you are immune to stress, it could be a successful strategy.

Swing Trading
Swing trading is another long-term forex trading style, but unlike position traders, swing traders only keep their positions open for a few days. Swing traders look for medium-term patterns and trends. They make traders when they feel there is a high probability that they can make a profit.
If you have a day job, swing trading is for you. Use your evenings analyzing market data and take advantage of medium-term market movements.

Which trading style best suits you? Let us know in the comments!

- Byo24News

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Zimbabwe Women's seven's side coach steps down

by Staff reporter | 22 May 2019 | 57 Views

Guard against uncontrolled fires

by Thomas Murisa. | 22 May 2019 | 53 Views

Lack of Political will has brought unnecessary calamity

by Tinashe Eric Muzamhindo | 22 May 2019 | 76 Views

Mnangagwa faces impeachment

by Mandla Ndlovu | 22 May 2019 | 99 Views

Perence Shiri dissolves CSC board

by Mandla Ndlovu | 22 May 2019 | 69 Views

Zimbabwe Army steps in

by Mandla Ndlovu | 22 May 2019 | 79 Views

Chamisa's spin doctor attacked

by Mandla Ndlovu | 22 May 2019 | 72 Views

Counseling offered for Game of Thrones fans

by Mandla Ndlovu | 22 May 2019 | 66 Views

Nelson Chamisa rallies Zimbabweans

by Mandla Ndlovu | 22 May 2019 | 94 Views

Best/ top data transfer apps from iPhone to Android

by Staff Writer | 22 May 2019 | 63 Views

Chamisa reaches half a million mark

by Staff reporter | 22 May 2019 | 77 Views

Parly to undertake public consultations on review of Water Act

by Community Water Alliance | 22 May 2019 | 80 Views

Mnangagwa addresses a divided ZANU PF caucus

by Mandla Ndlovu | 22 May 2019 | 81 Views

Binga airstrip set for $4m upgrade

by Staff reporter | 22 May 2019 | 71 Views

Mnangagwa joins African Peer Review Mechanism

by Staff reporter | 22 May 2019 | 48 Views

BREAKING: Cyril Ramaphosa elected President of South Africa

by Mandla Ndlovu | 22 May 2019 | 57 Views

Jacob Mudenda blocks fuel situation debate

by Staff reporter | 22 May 2019 | 64 Views

Chamisa's MDC still to appeal High Court ruling

by Staff reporter | 22 May 2019 | 60 Views

Zimbabwean woman honoured with a life-size statue in New York

by Staff reporter | 14 May 2019 | 106 Views

Marriage certificates for couples to enter Sudan hotels

by Mandla Ndlovu | 14 May 2019 | 100 Views

BREAKING: Tsvangirai's daughter in horror crash

by Methusi Ncube | 14 May 2019 | 152 Views

Mnangagwa to tender resignation as Zimbabwe leader to avoid humiliating exit

by Itai Mushekwe/Mary-kate Kahari | 14 May 2019 | 229 Views

Mnangagwa 'defends' workers' rights

by Staff reporter | 14 May 2019 | 88 Views

R2m drug smuggling syndicate busted

by Staff reporter | 14 May 2019 | 89 Views

Nurse recruitment goes digital

by Staff reporter | 14 May 2019 | 122 Views

Gumbura, co-accused not fit for trial, claims Prof Madhuku

by Staff reporter | 14 May 2019 | 84 Views

Gweru left with 3 months' water supply

by Staff reporter | 14 May 2019 | 75 Views

SA police launch manhunt for Zimbabwean armed robber

by Staff reporter | 14 May 2019 | 48 Views

7-day ultimatum for illegal advertisers

by Staff reporter | 14 May 2019 | 83 Views

Mnangagwa urges Chamisa's MDC council to give Harare a facelift

by Staff reporter | 14 May 2019 | 76 Views

ZCDC finance director arrested

by Staff reporter | 14 May 2019 | 82 Views

Defiant in the face of a Tyrant

by Thabo Makuyana | 14 May 2019 | 82 Views

R470 000 fraudster arrested

by Staff reporter | 14 May 2019 | 78 Views

Madinda urges players to soldier on

by Staff reporter | 14 May 2019 | 71 Views

Mnangagwa is a worried man

by Staff reporter | 14 May 2019 | 110 Views

Robber 'rapes' shopkeeper

by Staff reporter | 14 May 2019 | 78 Views

Zinara ropes in CID

by Staff reporter | 14 May 2019 | 59 Views