Hello friends,
Today I thought in helping you understand different Forex Trader Types and probably you can identify yourself in which category you fit in so you know how to approach the market each day.
There are 6 type of traders as far as I know:
1. News or Fundamental Traders
✅Fundamental traders focuses on Fundamental events that may potentially drive the market in a particular direction, causing spikes in a certain direction.
❇️This type of trading will be best for individual traders who likes to keep up with world events that can cause spikes in the market and seek to take advantage of these spikes that can last for a short period of time ranging from few seconds to 15 minutes.
✅This type of trading can be extremely risky as the market can change direction very fast which can cause a trader loosing his/her entire funds, but with good trading skills and experience this type of trading can be very rewarding and offers fast returns.
✅Fundamental Traders would seek to trade the Non-Farm Payroll data, employment figures, elections, CPI and GDP.
2. Scalpers
✅Scalpers are traders that focuses on holding positions for a short period of time from few seconds to a few minutes.
✅This type of trading requires a trader to sit on computer the whole day or during the time when the market is very volatile to take advantage of the small movements in the market to be able to make profit.
✅A trader may be inclined to take so many trades, making smaller profits each time to be able to make good return at the end of the day.
3. Day Trader
✅Day trader is more less like a scalper, taking short positions during the day and making sure that all positions are closed before the end of the day to stay away from negative news events, market gaps or widening of spread.
✅A day trader should be alert to changes in market direction and manage his positions swiftly and accordingly.
4. Swing Trader
✅Swing traders can hold positions for some couple of days and up to perhaps a couple of weeks.
✅Traders of this type analyses the market and take advantage of changes in trend direction and catch a trend while it is still fresh and ride this trend for a longer period of time before closing positions.
✅They would not be required to sit on computer the whole day. Rather, they would analyse, calculate the cost and take the position and they will only get back to computer after some couple of hours or another day to monitor the movement.
✅This type of trading is good for those that hold other businesses or jobs as they can make time for other activities to be done.
5. Position Traders
✅Positions traders hold trades for longer periods of time ranging from a several weeks to years.
✅For this type of trading patience is required to be able to hold trades for that long and a trader should have a very good knowledge about what moves currencies in a long term.
✅That also means that swap charges will be a lot and as a position trader he should put that into consideration before taking a long term position.
6. EA, Algorithmic Trader
✅These type of traders rely more or solely on computer algorithm programs to make buy and sell decisions for them. The EA also known as Expert Advisor may place trades on behalf of the trader and even closing trades when in profit.
✅Although the EA performs most of the work, a trader should also have basic knowledge of trading to be able to gain some measure of success from this type of trading.
Why is it important to trade in your local currency?
✅It can save you from a lot of calculations. When you trade in a currency which is not your local currency, your mind processes so much information to convert every number to your local currency. Your mind will be tired at the end of the day and you will begin making unplanned trades.
✅I watched a video on this topic recently and this fellow mentioned the same thing that I always thought, when you trade in a currency which is not your own, you wouldn't respect money. For example, $50 US dollar would look smaller if you are a trader living and using South African Rand. You may want to wait for more to be satisfied as the number 50 may look smaller in the eyes. But if we convert USD50 to South African Rand it would be R725.38 today and for many that would be a 4 days wage.
✅Many traders, especially new ones in the Forex industry, they really do not know what they want and how to go about making things work out consistently for them, they only think if they keep buying and selling eventually they can hit a million dollar and get away from the financial distress and poverty. Probably that is how the Forex Market is perceived, that giant casino that makes people rich and such way of thinking can destroy one's life and everything he acquired for years. The most important thing here is to respect money, knowing that it is very hard to obtain. As we respect it in our homes, hiding it from our siblings or relatives, we should respect it on the MT5 or MT4. Money is like Gold in our days, if you really want to know how important money is, get a spade and go dig for Gold.
I wish I could write more, but I feel like I have written more already and some people may find this boring to read. Please hit that like button if you learned something from here.
Feel free to comment below what you have learned or the type of trader you are.
Many Good wishes for you,
Forexintelligence AKA the Sniper:)
Today I thought in helping you understand different Forex Trader Types and probably you can identify yourself in which category you fit in so you know how to approach the market each day.
There are 6 type of traders as far as I know:
1. News or Fundamental Traders
✅Fundamental traders focuses on Fundamental events that may potentially drive the market in a particular direction, causing spikes in a certain direction.
❇️This type of trading will be best for individual traders who likes to keep up with world events that can cause spikes in the market and seek to take advantage of these spikes that can last for a short period of time ranging from few seconds to 15 minutes.
✅This type of trading can be extremely risky as the market can change direction very fast which can cause a trader loosing his/her entire funds, but with good trading skills and experience this type of trading can be very rewarding and offers fast returns.
✅Fundamental Traders would seek to trade the Non-Farm Payroll data, employment figures, elections, CPI and GDP.
2. Scalpers
✅Scalpers are traders that focuses on holding positions for a short period of time from few seconds to a few minutes.
✅This type of trading requires a trader to sit on computer the whole day or during the time when the market is very volatile to take advantage of the small movements in the market to be able to make profit.
✅A trader may be inclined to take so many trades, making smaller profits each time to be able to make good return at the end of the day.
3. Day Trader
✅Day trader is more less like a scalper, taking short positions during the day and making sure that all positions are closed before the end of the day to stay away from negative news events, market gaps or widening of spread.
✅A day trader should be alert to changes in market direction and manage his positions swiftly and accordingly.
4. Swing Trader
✅Swing traders can hold positions for some couple of days and up to perhaps a couple of weeks.
✅Traders of this type analyses the market and take advantage of changes in trend direction and catch a trend while it is still fresh and ride this trend for a longer period of time before closing positions.
✅They would not be required to sit on computer the whole day. Rather, they would analyse, calculate the cost and take the position and they will only get back to computer after some couple of hours or another day to monitor the movement.
✅This type of trading is good for those that hold other businesses or jobs as they can make time for other activities to be done.
5. Position Traders
✅Positions traders hold trades for longer periods of time ranging from a several weeks to years.
✅For this type of trading patience is required to be able to hold trades for that long and a trader should have a very good knowledge about what moves currencies in a long term.
✅That also means that swap charges will be a lot and as a position trader he should put that into consideration before taking a long term position.
6. EA, Algorithmic Trader
✅These type of traders rely more or solely on computer algorithm programs to make buy and sell decisions for them. The EA also known as Expert Advisor may place trades on behalf of the trader and even closing trades when in profit.
✅Although the EA performs most of the work, a trader should also have basic knowledge of trading to be able to gain some measure of success from this type of trading.
Why is it important to trade in your local currency?
✅It can save you from a lot of calculations. When you trade in a currency which is not your local currency, your mind processes so much information to convert every number to your local currency. Your mind will be tired at the end of the day and you will begin making unplanned trades.
✅I watched a video on this topic recently and this fellow mentioned the same thing that I always thought, when you trade in a currency which is not your own, you wouldn't respect money. For example, $50 US dollar would look smaller if you are a trader living and using South African Rand. You may want to wait for more to be satisfied as the number 50 may look smaller in the eyes. But if we convert USD50 to South African Rand it would be R725.38 today and for many that would be a 4 days wage.
✅Many traders, especially new ones in the Forex industry, they really do not know what they want and how to go about making things work out consistently for them, they only think if they keep buying and selling eventually they can hit a million dollar and get away from the financial distress and poverty. Probably that is how the Forex Market is perceived, that giant casino that makes people rich and such way of thinking can destroy one's life and everything he acquired for years. The most important thing here is to respect money, knowing that it is very hard to obtain. As we respect it in our homes, hiding it from our siblings or relatives, we should respect it on the MT5 or MT4. Money is like Gold in our days, if you really want to know how important money is, get a spade and go dig for Gold.
I wish I could write more, but I feel like I have written more already and some people may find this boring to read. Please hit that like button if you learned something from here.
Feel free to comment below what you have learned or the type of trader you are.
Many Good wishes for you,
Forexintelligence AKA the Sniper:)