What type of trading is best for you?
So the first question you need to ask yourself before you start trading Forex is ‘What type of trading would suit me best? ‘Naturally, your Forex trading system needs to factor in how much time you can dedicate.
Lets look at the different types of trading and what they require…..
Scalping is the fastest type of trading, positions are held from a few seconds to a few minutes. Scalpers aim to get a small amount of pips per trade countless times throughout the day. This style requires you to be glued to your screen and requires intense focus and quick thinking to be successful. As a scalper you’ll be looking to make small profits over a long run.
If you’re a day trader, since you’re entering and exiting trades throughout the day, you need to be glued to the screen the whole time. I day trade between 7 am-5 pm most days, however sometimes i will hold a position a little longer depending on market conditions. Day trading is suited for Forex traders that have enough time throughout the day to analyse, execute and monitor a trade. Day trading isn’t suited to people who already have a day job.
Swing trading is longer term that requires you to hold your trade anything from a few days up to 3 weeks. If you don’t have the time to monitor the charts all day this style of trading could be for you, it only requires a 30 minutes to an hour a day to analyse the markets usually at the end of each day. You can learn all about swing trading in our course. This type of trading is suited to those who already have a full time job.
Position trading is a long term style positions are usually held from a few weeks to several years. This style requires a lot of patience and a good understanding of fundamentals. Stop losses are placed wide due to the amount of time you’ll be holding the trade, you don’t want to get stopped out from small markets movements! You’ll need thick skin as at times you’ll see huge swings in the market and you’ll need to have absolute trust in your system.
Set up your trading account here