There are four main types of forex traders:
- The Scalper
- The Day Trader
- The Swing Trader
- The Position Trader
Scalpers hold onto for a few seconds to a few minutes at the most. Their main objective is to grab very small amounts of pips as many times as they can throughout the busiest times of the day.
Day traders usually pick side at the beginning of the day, acting on their bias, and then finishing the day with either a profit or a loss. These kinds of traders do not hold their trades overnight.
Swing traders are for those people that like to hold on to trades for several days at a time. These types of traders can’t monitor their charts throughout the day so they dedicate a couple hours analyzing the market every night to make sound trading decisions.
Position traders are those that have trades that last for several weeks, months, or even years. These traders know that fundamental themes will be the predominant factor when analyzing the markets and therefore make their trading decisions based on them.
No matter what style you choose, you have to make sure that it is truly fits your personality.
Always changing your forex trading style can lead to trouble and is a sure fire way to the doghouse.
But if you try scalping and you realize after a week that it’s too fast or too draining, then be flexible enough to switch it up.