Types of Forex Traders & Different Types of Traders

How Different Types of Forex Traders Trade the Market?

Different types of forex traders use different chart timeframes to trade the FX market. Different types of forex traders also use different forex trading strategies to execute their forex trading methods.

Different forex trader types use different methods - for example different types of forex trader will use varying forex leverage options depending on their forex trading types - short term forex traders might use more leverage than the long term forex traders.

Different forex traders will also use different forex trading schedules when trading the online forex market. Short term forex traders will use forex trading schedules which are aimed at timing the market to find & identify intraday forex trading opportunities while long term forex traders will use forex trading schedules which are aimed at following the long term forex trend.

The four main forex trader categories are:

Scalper Traders

A forex Scalper trader will trade the short term intraday forex market movements.

A forex Scalper trader will open & close their forex trades within minutes

Forex Scalper traders will open & close forex trades many times during the Scalper & they can open 10 to 20 forex trades in one day.

Forex Scalper traders will use forex trading strategies that capture the intraday forex price short term market moves.

Forex Scalper traders will typically use shorter forex chart timeframes such as the 1 minute charts.

Forex Scalper Traders will only hold their forex trading positions for a few minutes.

Day Traders

A forex day trader will trade the intraday forex market movements.

A forex day trader will close all their open forex trade positions at the end of the forex market session close - i.e. At the end of the day the forex day trader will close all open forex trades.

Forex day traders do not leave overnight forex trade positions.

Forex day traders will open and close forex trades many times during the day and they can open 5 to 10 forex trades in one day.

Forex day traders will use forex trading strategies that capture the intraday forex price short term market moves.

Forex day traders will typically use shorter forex chart timeframes such as the 15 minutes charts.

Forex Day Traders will only hold their forex trading positions for a few hours.

Swing Traders

A forex Swing trader will trade the medium term forex market swings movements.

A forex Swing trader will open & leave their forex trades open for days or weeks in order to capture the medium term forex market swings.

Forex Swing traders will open 3 to 5 forex trades in one week.

Forex Swing traders will use forex trading strategies that capture the medium term forex price market moves.

Forex Swing traders will typically use forex chart timeframes such as the hourly charts or even daily charts.

Forex Swing Traders will only hold their forex trading positions for a few days to a few weeks.

Position Traders

A forex Position trader will trade the long term forex market positions movements.

A forex Position trader will open & leave their forex trades open for weeks or months in order to capture the long term forex market trends.

Forex Position traders will open 5 to 10 forex trades in one year.

Forex Position traders will use forex trading strategies that capture the long term forex price market moves.

Forex Position traders will typically use forex chart time-frames such as the weekly forex charts or even monthly forex trading charts.

Forex Position Traders will hold their forex trading positions long enough so as to catch the long term forex trend movement.

Types of Forex Traders & Different Types of Traders