The Different Ways To Trade The Currency Market
There are a lot of ways to trade forex, we have all heard they expression "to each their own" and its the same for trading. There are different strategies for different traders, have the Scalper, the Day Trader, The Swing Trader and The Position Trader.
A scalper is the a trader that is looking to take daily position that him/her can get out of in seconds, minutes to hours. Scalpers are looking for extreme price movements where the liquidity is high.
They believe that the fact that they are in and out of the markets in minutes will make them as traders take lower risk. negative effects of trading like this can be high transaction costs from spread and commissions. This style is very popular if you are trading forex, go check our broker reviews .
The Day Trader
Day Traders usually stays in the markets for hours and most of day traders are only in the market during the day and close most if not all of their positions before the trading day ends.
Day Traders tend to do more technical and fundamental analysis than scalper.
Day Trading demands you sit at screen for most of the day, especially during high volume hours(morning and opening of US/London Markers). This style is very popular if you are trading forex, go check our broker reviews .
The Swing Trader
This is the trader that takes everything from daily, weekly to monthly positions. They tend to use a lot of technical analysis to see inefficiencies in the markets. They believe that there is median in the market that price will always strive for, that is why the use of vwap and moving averages are very popular.
This is a good style if you don't have to much time to spend in front of your screens or if you don't have enough capital for scalping/day trading.
The Position Trader
This is the trader that take longterm positions, this can be everything from weeks up to years. They tend to do a lot of fundamental analysis and set wide stop loss or limit orders, a good way to trade like a position trader is to use the market indices when taking your positions, timing your entrance and exits with larger market movers.
To read more about what brokers might fit you are your trading style, go to or review's page .