Different type of traders: beginner forex traders should know - Singapore Forex Trading, Singapore Forex Academy, Singapore Forex Association

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Different type of traders: beginner forex traders should know

  • The scalper: A scalper is a trader who looks for short, minimally profitable opportunities in the market that can add up over time. If you’re a scalper, you don’t have the patience to hold a position for a lengthy period and you grow bored easily when keeping trades active for too long. You’re motivated by the excitement of seeing fast-moving markets, sometimes trading around major news events to realize the vast potential of a large move in a very short period of time. You aren’t happy about placing a losing trade, but you’re typically less impacted both financially and emotionally due to the small nature and frequency of trades that you place.
  • The swing trader: A swing trader is someone who typically enjoys staying in a trade for as little as a few hours to potentially days. If you’re a swing trader, you like the analysis aspect of trading — finding patterns that develop and exploiting them like a cunning strategist. Because you place fewer trades on a daily and weekly basis, losing trades could have more of an impact on your psyche, so keeping your longer-term goals in mind and sticking to the plan are imperative.
  • The position trader: A position trader has a much longer time frame in mind than most other traders. If you’re a position trader, you could be in a trade for months or even years if your conviction is strong enough. Usually based on a fundamental perspective of political, sentimental, or supply/demand reasoning, you brush off the fear of short-term movements. You’re much more tolerant of drawdowns and could take losses for a very long time before finally admitting defeat.