Saturday, April 25, 2015

Types of traders

The Day Traders
Those traders perform several trades throughout a trading day. They
usually try to locate opportunities during the one day period. It could be
anything between 1-10 opportunities per day (of course
every traders with his or her own trading style). A typical day
trader invests 3-4 hours a day in trading. They usually like to
examine charts of 15 minute to 1 hour time frames.
This is a job like any other, performed by people who are doing it
for a living.
This type of trading requires self discipline, patience, and the
ability to cope with a loss. A loss is part of any trader's life.
The Scalpers
Those are traders who try to capture several pips here and there,
on every trade they enter. This type of trader looks for trades in
the more relaxed hours of the day, when a trading range develops
(although there are some who look for strong movements instead).
Scalpers usually go for the highest possible success rate, as close

as possible to 100%. That enables them to risk more than the
potential gain, and still come out highly profitable. A typical
scalper might work around 3 hours a day. Scalpers usually like to
examine charts of 1 minute to 15 minutes time frames. Trade sizes
are usually large because the small pip count of the gains (say 5
pips) need to be reflected in high $$ amounts in the account.
The "Swing Traders":
The majority of traders belong to this group. Swing traders
typically hold a trade from several hours to several days. They
look at charts of 1 hour to 4 hours typically. Many of these
traders are not professionals who make a living out of trading, but
rather view it as an alternative or supplemental income source, or
a second job alongside their day job. Many utilize technical
analysis but stay tuned to the fundamental (economic) side of
trading.

The "Investors":
These are quite a rare breed in the world of Forex, as they're
mostly into stocks. Long term investors locate trades on higher
time frames such as a daily or weekly chart. Their goal is to
locate a large trend and join it. This type of traders can hold a
trade for several months, until it reaches their long-term price
target.
The "Automated Robots Users":
These Forex traders either purchase ready-made robots to trade for
them, or develop their own robots. Because the robot is doing all the
work automatically, this type of trader enjoys much more
freedom and some devote their free time to look for more trading
strategies that will increase gains.
Now that you understand the various types of traders that can be
found in the world of Forex trading, it's time to find out to which
group you belong.
To which group of traders you belong?
To answer this question, you need to ask yourself the following

questions:
1. How much time are you prepared to invest in Forex trading?
2. What percentage of gain do you expect to have in a month?
Just do me a favor and be realistic! Earning 100% return every
month is not realistic. This turns trading into wild gambling. For
me, 10%-20% per month is great. So, be honest about this.
3. If you've already been trading for a while: what type of
strategy you found most successful for you - Scalping? Swing
trading?
What works best for you is your pathway to success. Don't try to
find something else or force yourself to use a different trading
style. Cling on to the method that attracts you the most and has
proven to work for you. Don't forget that with the same trading
style, some traders will win and others will lose. It's all in the
head. If you don't know any good trading systems don't worry, I'll
show you great systems in future emails.
4. How much funds are you willing to lose without the loss
affecting you in any way?
Never, ever, ever play with money you can't afford to lose!
When you play with money you need for other purposes, you will lose
it because you will trade differently. Believe me, I've been there.
5. Do you have the required trading environment?
A trader needs a quiet surrounding with no outside interferences.
Do not consult with anyone. There will always be someone there to
support or argue with your opinion, but that doesn't mean they're
right and you're wrong. Your own decision is always the best one.
After you answered these questions, you'll probably realize what
type of trading works best for you. I'm personally a day trader,
and have an additional account for swing trading activities.

Throughout my trading career I've tried numerous trading systems
with every possible time frame. It took me time to draw
conclusions, and now I know what works best for me. Now it's your
turn to know what works best for you.
That's it for now. In the next few days, as promised, you'll
receive our new indicator that we are now testing.
To your success,





















1 comment:

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