Finding your Forex Trading Style

Successful online forex trading starts with finding your trading style. This can go a long way in helping you to define your trading strategy and develop your trading plan.

With forex trading, it is important to remember that one size definitely does not fit all. Your success comes down to a number of factors including your psychology and your forex trading account size. FX trading expectations also play a huge role in your success. For this reason, it is fundamental that you find your trading style before developing your plan and strategy.

There are four main types of online trader:

Scalper

A scalper keeps a position open on a trading platform for just a number of seconds or minutes. Scalpers are short-term traders with a great deal of stamina. They are quick thinkers, risk-takers and have incredible concentration spans. They do not care about the bigger picture and simply want to make a quick profit before exiting the trading platform.

Day trader

With day trading a position never stays open overnight. The typical timespan of a day trade is from minutes to hours. Day traders use technical analysis to execute their trades and tend to avoid fundamental analysis. They usually arrive at their trading decisions from a bigger timeframe, while executing their trades from a smaller timeframe.

Day traders characteristically aim to start and finish a project within the same day. They are also willing to sit at the trading platform for long periods of time. As with scalpers, they do not care about the bigger market picture but instead want to take advantage of low margin and high leverage.

Swing trader

A swing trader keeps a position open for a number of days to weeks. Swing trading involves using a combination of technical and fundamental analysis, so the ability to follow forex news and analyze charts is essential. Patience is a virtue as the online trader will need to sit and wait for long periods of time before a suitable setup presents itself.

Position trader

This is the longest duration style of FX trading and requires a deep capital to be successful. Position traders need to be incredibly patient as they keep their positions open for weeks, months or even years. Fundamental and technical analysis is essential for successful position trading. Further still, position traders need to be able to walk away from the trading platform without experiencing continued nervousness, stress or worry.

Conclusion

Now matter what kind of trader you are, IMMFX has the best trading tools and features to ease your trading career and help you winning forex market.