TheForexSecret

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4 Types of Forex Traders
Presented by

• The Forex Secret

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Introduction
Bigger than every stock market combined, the
forex market attracts a variety of traders, all
of whom operate with distinct trading techniques.
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Day Traders
Day traders, as their name implies, work on a
day-by-day basis. At the end of every day, a day
trader will close out all of his or her trade
positions, opting not to leave anything running
overnight.
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Characteristics of Day Traders

• High volume trading
• Ability to focus on technical patterns rather
  than relying on data analysis
• A focus on quick turnover rates, aiming for more
  profit
• Pairing volatile currencies such as the pound and
  the yen, which can show large movements over very
  short timescales
• Trading through day averages and characteristics
  rather than using long-term planning

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Position Traders
On the opposite end of the spectrum from the day
trader lies the position trader, who holds his or
her position over longer time periods weeks,
months, or even years.
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Characteristics of Position Traders

• Hold fewer trade positions (sometimes only a
  handful a year)
• Make decisions by taking economic models,
  governments and interest rates into account
• Work across any of the major currencies,
  including emerging market favorites
• Seek to capture the bulk of a positions movement
  in the hope it will appreciate over time
• Emphasis fundamental analysis of stocks

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Swing Traders
As their name implies, these traders buy when the
market begins to show a swing upwards and sell
when this price swing stops. Timing is very
important for swing traders and a savvy trader
will pay close attention to a stock over a longer
time period.
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Characteristics of Swing Traders

• A blended approach to fundamentals analysis and
  patterns theyll look at macroeconomic as well
  as day-to-day trends
• A focus on short-term price momentum to
  capitalise on the upward swing
• Placing positions in liquid currency pairs like
  the pound and the dollar
• Capturing high and low extremes
• Like day trading, swing trading involves
• technical analysis of price movements

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Scalpers
Scalping is a trading style that specializes in
profiting off small price changes, generally
after a trade is executed and becomes profitable
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Characteristics of Scalper

• Hold onto for a few seconds to a few minutes at
  the most
• Objective is to grab very small amounts of pips
• Precision timing and execution
• Use day trading buying power of four to one
  margin to maximize profits

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Conclusion
No matter what style you choose, you have to make
sure that it truly fits your personality.
Always changing your trading style can lead to
trouble and is a sure-fire way to blowing your
account.
If you try scalping and you realize after a week
that its too fast or too draining, then be
flexible enough to switch it up.
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Thank You
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