The Forex market is the largest financial market in the world. A market with more than $6 trillion a day in turnover presents plenty of opportunities for the retail forex trader, but those opportunities won't be handed to you on a silver platter you have to work hard to ensure you're successful in the forex market. In this appendix, we set you up to do exactly that by helping you choose the right trading strategy for you.
What is your forex trader type the scalper, swing trader or position trader?
The Scalper: A scalper is a trader who looks for short, minimally profitable opportunities in the forex 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 forex trades active for too long. You are motivated by the excitement of seeing fast moving markets, sometimes forex trading around major news events to realize the vast potential of a large moving 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 the forex trades that you place.
The Swing Trader: A swing trader is someone who typically enjoys staying in a forex trade for as little as a few hours to potentially days. If you are a swing trader you like the analysis aspects of forex trading finding patterns that develop and exploiting them like a cunning Strategist. Because you place few trades on a daily and weekly basis, losing forex trades can have a more impactful 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 much longer time frame in mind that most other forex traders. If you are a position trader you maybe 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 and demand reasoning, you brush off the fear of short term movements. You are much more tolerant of drawdowns and can take losses for a very time before finally admitting defeat.
There is no right or wrong forex trader type you just need to identify the type of trader you are and trade accordingly.