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Wednesday, June 21, 2017

Type of Traders: Which One Are You?





Either you are rookies or a professional Trader, it is important for you to understand what type of trader you are. Understand the advantage and realize the weakness of each type so you know exactly what to do in the market.

Most of rookies normally don’t know or just too confused to decide what are they going to do in the Forex Market. They even don’t understand if there are different types of forex traders which determine their opening and closing position.

While some of the experienced traders sometimes just realized that they are not suited to be a certain type of trader and found out that other option might suit him/her better.

So, the followings are different types of forex trader that you need to understand:



Day Trader

The idea is to enter and exit the market in one day. A day trader would like to see the chart in short period of time frames such as m5, m30, or h1.

A Day Trader would rely on technical analysis and will try to get profit when the market is easy to predict based on his/her technical analysis.

Volatile market would give them lots of opportunities to enter the market and to get huge profit in one day. However, too high volatility sometimes can be a nightmare for a day trader since market sentiment won’t be predicted easily when there is big economic news that influences the market.


Swing Trader

Swing Trader would hold their position longer than a day trader. They would expect a change in direction of the market. That is the chance that they are looking for to gain maximum profit. Most of the time, swing traders would rely on fundamental analysis instead of technical.

They analyze the market thoroughly and understand macro economy better than a day trader.
Their potential of profit is actually greater than the previous type of trader but a huge risk of losing their money comes together with that opportunity.


Position Trader

Position Traders would hold their position even much longer than a Swing Trader. Sometimes they will hold the position for weeks, months, and sometimes even for years.

They will use a combination of Fundamental and Technical Analysis in order to determine when to enter and exit the market.


Scalper

This might be the quickest type of trader in the forex market. They will try to open and close their position in a very short period of time, even shorter than Day trader.

Most of them will try to take the opportunity when there is big economic news announced and will try to follow the short term trend that is occurred.

This type of trader considered to the one with the highest risk compared to other types of traders.

So, have you decided yet? What type of trader are you now or are you going to be?