What’s Your Sign? Determining Your Trader Type

There are thousands of forex trading strategies, but you have to choose the one that works best for you. At FOREX.com, traders are grouped based on personality types and specific strategies are developed for each of them. They have identified three types of traders:

>>> Scalper: A scalper is a trader who looks for short opportunities with minimal profit in the market and which can increase over time. If you are a scalper, you will not have the patience to hold a position for a long time, and you will easily get bored of keeping the trades active for too long.

The excitement of seeing fast-moving markets, occasionally trading major news events to realize the huge potential of a big move in a very short period of time. You are not happy about placing a losing trade, but you are usually less affected financially and emotionally because of the small nature and frequency of the trades you take.
 

>>> Swing Trader: A swing trader is someone who usually enjoys staying in a trade for a possible few hours to days. If you are a swing trader, you love the analysis aspect of trading – finding the patterns you develop and exploiting them like a cunning strategist.

Since you are placing fewer trades on a daily and weekly basis, losing trades can have a greater impact on yourself, so it is essential to keep your long-term goals in mind and stick to the plan.

Read more: Choose the Right Broker for Trend Trading

 
>>>>Position trader: The position trader has a much longer time frame than most other traders. If you are a position trader, you may be in a bargain for months or even years if your conviction is strong enough.
Usually based on a basic perspective from political, emotional, or supply/demand logic, you ignore the fear of short-term movements. You are more tolerant of withdrawals and can take losses for a very long time before you finally admit defeat.
In order to accurately determine what type of trader you are, take the test. Note: You can switch between types of traders. At first, you may feel more comfortable as a scalper, but as you become more confident, you may prefer to be a swing trader and hold trades for a little longer period of time.
There is no ‘right’ or ‘wrong’ type of trader – just select the type of trader you are and trade accordingly.