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What type of Forex trader are you?

Many Forex traders fail because they try to follow a strategy that isn’t suited to them. So before you embark on any type of Forex trading strategy, you need to decide what type of trader you are. Use your answers to the following questions to help you build a picture of the type of trader you are:

Are you prepared to learn different techniques for Forex trading?

How much time do you have to trade?

How stressed will trading make you?

What are you strengths and weaknesses?

Traders and strategies fall into the below categories:

Scalpers

Scalpers jump in and out the market quickly for gains of up to 10 to 20 pips.To be good at this type of trading, you need to stick to your strategy religiously and be able to stare at your trading screen all day.With this type of high frequency trading, costs can be a concern. You need to be able to concentrate for long periods of time.

The day forex trader

As the name suggests, this means entering and exiting positions through the day and rarely holding them overnight. You’re looking for quick turnover rates ie gains of between 30 and 80 pips.

For this type of trading, you’ll concentrate on chart patterns and market sentiment. If you work, this type of trading is unlikely to suit you.

The swing traders

These traders take advantage of longer time frames. They hold positions for hours, days or even longer. Like the day trader, this trader uses technical analysis.

The position traders

Instead of monitoring short term market movements like short term traders, these traders look at long term plans. Position strategies span for weeks, months or even years. They look at currency pairs which promise.

Glad that you can now see what type of Forex trading will suit you best…

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