If you want to be a successful Forex trader, than you need to make sure you know your style of trading just as well as you know the market. Different trading plans go with different trading styles so it is imperative to know how you trade before you can come up with a plan.
No one will know better than you what type of trader you are. Various factors are counted in to determining this classification including your personality, how often you plan to monitor the market, and whether or not you want to take a hands on approach. Generally there are three different types that people fit into.
If you are considered a "Short Term" trader, than this basically means that you are an active, or day trader. You actively trade in an out of the market if you are a short term trader and trades could be just minutes or less in when it comes to the Forex market. Price fluctuation is how money is gained. Pip fluctuation is narrower in the Forex market and just a couple pips are where the profits are. Without the aid of a Forex robot you will have to be very vigilant of the market.
Mid Term traders only have a slightly longer time frame than that of a short term trader. Trades may be held for anywhere from a few minutes to a few hours but they will rarely extend over a day. Price fluctuations are also traded on by the mid term traders but they will hold off for longer before trading again. This way once they have ridden out the profit there is the opportunity to re-examine the market before deciding the next move.
Long Term traders: These are usually not individual traders but large institutions or hedge funds. Trading positions can be held for long periods over weeks, months or more than a year. Since individual traders want to make profits quickly they do not prefer long time trading.
Whatever you feel is the best trading style for you, it is necessary to not sway from that decision and work to create a regimen of trading that is consistent. Maintain your focus on this until you are successful and adept with your style of trading.
If you do not like the trading style that you started out with you may change it. However, make sure that you do not mix up short term trading with long term trading which requires expert handling. When you are new to forex trade it is always wise to stay with one particular trading strategy. Do not change your intention to trade short or mid term trade to long term trade. Keep to your trading strategy. If you find that it does not work, follow your exit strategy but never change your trading style which is based on the trade itself. If you do you will find that you get into trouble.
Any type of trading, whether forex or others requires discipline. You should practice this by choosing and developing your trading strategy which should be based on your trading style, and never moving away from it. - 23204
No one will know better than you what type of trader you are. Various factors are counted in to determining this classification including your personality, how often you plan to monitor the market, and whether or not you want to take a hands on approach. Generally there are three different types that people fit into.
If you are considered a "Short Term" trader, than this basically means that you are an active, or day trader. You actively trade in an out of the market if you are a short term trader and trades could be just minutes or less in when it comes to the Forex market. Price fluctuation is how money is gained. Pip fluctuation is narrower in the Forex market and just a couple pips are where the profits are. Without the aid of a Forex robot you will have to be very vigilant of the market.
Mid Term traders only have a slightly longer time frame than that of a short term trader. Trades may be held for anywhere from a few minutes to a few hours but they will rarely extend over a day. Price fluctuations are also traded on by the mid term traders but they will hold off for longer before trading again. This way once they have ridden out the profit there is the opportunity to re-examine the market before deciding the next move.
Long Term traders: These are usually not individual traders but large institutions or hedge funds. Trading positions can be held for long periods over weeks, months or more than a year. Since individual traders want to make profits quickly they do not prefer long time trading.
Whatever you feel is the best trading style for you, it is necessary to not sway from that decision and work to create a regimen of trading that is consistent. Maintain your focus on this until you are successful and adept with your style of trading.
If you do not like the trading style that you started out with you may change it. However, make sure that you do not mix up short term trading with long term trading which requires expert handling. When you are new to forex trade it is always wise to stay with one particular trading strategy. Do not change your intention to trade short or mid term trade to long term trade. Keep to your trading strategy. If you find that it does not work, follow your exit strategy but never change your trading style which is based on the trade itself. If you do you will find that you get into trouble.
Any type of trading, whether forex or others requires discipline. You should practice this by choosing and developing your trading strategy which should be based on your trading style, and never moving away from it. - 23204
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