There are many trader types, which one are you?
One of the first questions you should ask is, “How long do I have to be in a trade and how long can I be comfortable in a position?” This will define the type of trader you are.
We can identify different trading personalities by time period. Take a look at these different styles and see which one might fit you.
scalping trader: Scalpers are very short-term traders, typically in and out within seconds to a maximum duration of 30 minutes. Most brokers hate this type of trading. You have to be careful because of the number of lots needed to make a good profit from a few to several pips.
day trader: Day traders open and close positions with a minimum duration of 30 minutes, but generally close their operations on the same day of the session.
swing trader: Swing traders hold positions with a minimum duration of one day up to a maximum of two weeks.
position trader: They are traders who maintain long-term operations that have a minimum duration of two weeks to months and even longer.
How do I analyze the market and decide when to open a position?
There are two basic types of analysis that can be done in Forex, and depending on each one, decide the exact moment of your entry into the market, with how much lottery, risk per operation, etc.
Technical analysis: Using charts and technical indicators to analyze the past price movements of a currency pair to see which direction it may go in the future.
Technical analysis can help you identify these trends in their early stages and thus provide you with very profitable trading opportunities. trading.
Fundamental Analysis: Looking at and analyzing economic reports and indicators such as GDP, CPI, employment data, or any political news that may affect a country’s economy and its currency.
In Traders Business School courses you will learn which specific news events make currencies move the most. By now, you know that Forex fundamental analysis is a way of analyzing a currency through the strength of that country’s economy.
Trading Personalities
To be successful in forex takes hard work, a lot of time, sweat and tears. New traders need to be very realistic from the start. Beginners should start small and constantly evaluate their winning trades as well as their losing ones.
Before you can be successful in trading, you must spend time doing your homework, knowing your strengths and weaknesses, having a personal schedule, trading capital, and most of all a trading mentor.
Take the time to answer these questions, and also review your trading journal to see how you are doing in different trading situations. Only in this way will you be able to decide on a trading personality that is compatible for you.
Sounds interesting to you, right? Keep learning with DTP with upcoming articles on our Blog.