Forex traders who earn money on this market are traders who first found the trading style that suits them the most. The success of a trader depends on certain factors, such as psychological factors as well as technical factors, the style of trading is also an important component of success in the Forex market, it is essential to define his style of trading before even thinking about developing a trading strategy. We distinguish three major trading styles among forex traders that we will review below.
A trader who practices scalping will maintain his open positions in the forex market a few seconds to just minutes. Scalpers are traders who intervene on the Forex market in order to generate profits in the very short term, the traders are thinkers who think while calculating their risks quickly, it is a style of trading asking a lot of concentration. Scalping traders do not care about long-term graphical representation and simply want to make quick profits, these traders accumulate positions and accumulate small profits at the end of their trading session. form a significant cash gain. We invite you to read our article”Is forex scalping a good trading strategy? ” For more information on this trading style.
This second style of trading also called “intraday trading” is a style in which traders take positions in the Forex market on a single day and do not keep any of them exposed overnight. Trading in the Forex market by daytraders typically lasts from several minutes to a few hours, traders who are followers of this style of trading rely primarily on technical analysis as well as fundamental analysis, two of the five best practices for trading. make money on the Forex market, in order to make their investment decisions. Traders who practice day trading aim for most of the time to achieve daily goals.
The swing trading is a trading style for traders with the soul of long-term investors. The positions of traders remain open on the market for several days or even weeks. Traders who have adhered to this style of trading rely on technical analysis and a little less on fundamental analysis. When we are a swing trader, patience is important in our trading because we can wait for long periods of time for a trading opportunity to arise and then it comes to an end. This style of long-term trading generally requires significant capital in order to cope with the large price swings that may occur on the market during the long weeks in which positions can be kept open,
Which trading style is best for you? Do you practice scalping at forex brokers and regulated binary options brokers offering binary options with 60-second clearances or are you a day trader or swing trader aiming for long-term profitability?