School Summer Holidays have started for the Goswami family. Meanwhile lots of networking (offline and online) with traders going on .
When the sun comes out, it feels like a different country altogether here in London.
OK….On social media, I am often asked (by fellow traders)..
What kind of a trader am I?
What’s my trading style? … which led me to write this blog.
The foreign exchange market is huge. The market is open 24/7
If you are keen in learning how to trade the Forex market, you might also like to know the different types of traders in the market.
Knowing which style suits your lifestyle best could increase your chances to understand how you would like to trade the market.
1) Day Traders: They open and close their trades within the day. They check the 5 mins charts to 4 hour charts.
2) Scalpers– They go in and out of the market within minutes. This is now most commonly done by EA (Expert Advisers) or algorithm trading (Algo Trading) which means, you code your strategy in the computer and let the computer take the trade. Nice! They usually check 1 min-5 mins charts.
3) Swing Trader: They enter the market at the end of the day and let their trades run for a day or two. Usually trade on a daily chart or 4 hourly chart.
4) Position Trader: Usually trades on a daily , weekly or monthly chart. They enter a trade for at least a week. Some trades can go up to 6 months. As a position trader, you need a broker who has low roll over rates. Brokers charges a daily fee to keep the trade going . That’s called the roll over fee.
Say you have a day job, then being a swing trader or any (end of day strategy) will suit you better.
If you have shift work like nurses, pilots and similar working hours ( then you have the flexibility to try day trading or Swing Trading. Take a s strategy which has hourly charts instead.
Hope you have a fair idea of the different types of traders and find one that blends with your lifestyle.
P.S: Do comment on which style suits you and why?
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