Four Types of Forex Traders
Four Types of Forex Technical Analysis Traders
The four types of forex style methods for technical analysis traders are: forex scalping, forex day trading, forex swing trading & forex position trading.
Forex traders learn and master one forex trading style that best suits their forex trading schedule.
Scalping Forex Trading
Scalping forex trading is used by traders who set small forex trading profits repeatedly & trade many trades during the day so as to make these small profits many times repeatedly throughout the day.
Forex scalpers set and open forex trades that lasts from a few seconds to minutes. This forex scalping strategy tries to make profits from small changes in the forex price. Forex traders who use these methods are those forex traders that find it easier to make profits from small forex price moves rather than from the large forex price moves.
Forex Scalpers will make many forex trades in one day and forex scalpers can open anywhere between 10 -20 forex trades in a day or even more.
Forex Day Trading
Day Trading is used by traders who open and close forex trades within the same day. Forex day traders will close their open forex trades within the same day and forex day traders do not hold overnight forex trade positions - forex trades are opened only for a few hours & closed within the same day.
A forex day trader will open forex trades & close all forex trades before the forex market closes.
Forex day traders will also try to catch small to medium forex trading profits per forex trade. These forex day traders will try to profit from small to medium moves in the forex price movement. Forex day traders will generally open between 3 to 5 forex trades in one day.
Forex Day Trading is also sometimes referred to as forex intraday trading.
Forex Swing Trading
Forex Swing Trading is used by traders who want to capture the short term forex price trends and profit from these short term forex price trends.
Forex Swing Traders will open a forex trade & leave this forex trade open for several days so as to capture the short term forex market trend momentum and make profit from the short term forex market trend momentum.
Scalper forex traders will determine the direction of the short term forex market trend and then place forex trades in the direction of these short term forex market trend so as make profit from the medium forex price changes.
Forex swing traders will keep a forex trade open for a few days & these forex trades might last from 3 days to 7 days on average.
Forex Swing traders will open a few forex trades in a week & these forex swing traders may open anywhere between 3 to 5 forex trades in one week.
Forex Position Trading
Forex Position Trading is used by traders who want to capture the long term forex price trends and profit from these long term forex price trends.
Position forex traders will keep their forex trades open for weeks or even months.
Position forex traders will try to make profit from the large forex price changes in the forex price. Forex position traders will try to determine the long term forex trend and place forex trades so as to profit from the momentum of the long term forex trends.
Forex position traders will keep a forex trade open for a few weeks to a few months & these forex trades might last from a few weeks to a few months on average.
Forex position traders will open a few forex trades in a year and these forex position traders might open anywhere between 5 to 10 forex trades in one year.
Differences between Forex Scalping, Day Trading, Swing Trading and Position Trading
The differences between forex scalpers, forex day traders, forex swing traders & forex position traders are:
Forex scalpers - goal is to profit from short term forex price fluctuations and not from the medium term forex trend or long term primary forex trend
Forex day traders - goal is to profit from short term forex price fluctuations and not from the long term primary forex trend
Forex swing traders - goal is to profit from the momentum of a swing trend intermediated forex trend rather than from the long term primary forex trend rather or from the short term forex price fluctuations
Forex position traders - goal is to profit from the long term primary forex trend rather than from short term forex price fluctuations
Differences between Forex Scalping, Forex Day Trading, Forex Swing Trading & Forex Position Trading
