There are different types of Forex traders in the foreign exchange market, Fxstay Traders are experienced professional ones and trade in long term so you must find out what is your trading style in currency trading market, Forex market is the biggest trading market with thousands of traders and investors. Every trader has his own trading style and own mindset to act according to the situations and his personality. Most traders in their beginning stage are under the control of their emotions. It means if their first punch hits the target they then get in the stage of overconfidence which is dangerous. Just after winning their first trade they again place their next trade without waiting for the price to rebound. There are most traders who in their beginning stage want to win the world within very short time. Such traders continue to increase the use of Leverage and at the last they may be left with no money.
There are most traders who make their own plans and want to execute their own plans at any cost. It means that even if the plans of these traders are wrong but still they will keep trying their plans until their money is wiped out. There are many traders who always want to win and cannot see the losses in their trades. There are many traders who can wait for the trade to go in their favor and trade at the right time but then there are also many traders who cannot wait and want to go back to home with unlimited profit at the end of the day. There are many different personalities and studying all the personalities is difficult so these different personalities can be broadly categorized into two main types and these Scalpers and Swing traders. The personality of the traders determines their trading styles. Check out Types Of Forex Traders below:
Types Of Forex Traders
Scalper traders or Short term traders
Scalper traders are those traders who want to continue grow richer in every next second. These traders want to benefit from every price fluctuation. These traders cannot place a trade today and then wait for a year to see the profit. The time duration of 5 to 30 minutes is an average in most of the short term trades or day trades. This is the time duration that most of the Scalpers wish to keep their position open for. These traders want to make a large gain from many small gains. These traders use the stochastic charts as Oscillators and keep 1 minute and 3 minute of Moving Averages in their trading tools.
Swing traders or Long term traders
Swing traders are those traders that have high level of patience. These traders do not get excited easily. These traders have patience enough to place a trade today and then wait for the longer period of time to see the profit. These traders do not want to gain from every price fluctuation or short term opportunities. These traders believe more in Fundamental analysis. Higher amount is required by these traders to trade and earn huge gains over long term period. The trading tools of these traders include Moving Averages of 13 minutes and 60 minutes.
Some traders follow a mixed style of Scalper trading and Swing trading. These traders are called the Combination traders and earn gains both from Scalper trading and Swing trading. These traders trade both ways by keeping some amount for the Scalper trading and some for the Swing trading. To learn more about different types of Forex traders continue reading.
Find your trading Personality types
Now the question what type of trader you want to be? The answer is very simple that to predict your trading personality type, you must first analyze your level of patience, level of excitement and investment power.
You can be a Scalper trader
If you cannot wait for longer period of time to see the profit, you cannot be a Swing trader. If you want to go home with profit everyday then you can be a Scalper trader. If you get excited quickly and want to earn profit from every opportunity then you can be a Scalper trader. If your investment power is not high then you can be a Scalper trader. As a Scalper trader, study Moving Averages of 1 minutes and 3 minutes.
You can be a Swing trader
If you can wait for longer period of time to see the profit, you can be a Swing trader. This longer period could be 1, 2 or 3 years or may be more. If you do not want profit everyday or don’t have time to earn profit everyday then you cannot be a Scalper trader. If you get excited on every Forex news but want to act only on major market news that have potential to give you secure profit over a longer time then you can be a Swing trader. If your investment power is high then you can be a Swing trader. As a Swing trader, study Moving Averages of 13 minutes and 60 minutes.
You can be a Combination trader
You can be a Combination trader if you can wait for a longer period of time to see the profit but also don’t want to miss the short term opportunities. You can be a Combination trader if you act on the major market news as well as keep an eye on the news also that can give you small gain. You can be a Combination trader if you can invest on a long term basis as well as keep some amount for short term trading.
Now you know about all Types Of Forex Traders, So studying your personality traits, you will be able find out your trading personality type.