Most of the time, the trading style of the trader reflects on their personality. When you choose a trading strategy, you must reflect on it based on your personality and lifestyle. If you create a trading style outside your personality, it will only cause difficulties along the way and you will find it hard to stick to your trading plan. If the trader finds the styles best suited for them, it will benefit in the long-term. But when a trader isn’t comfortable with their trading style, they are the ones who easily get subjected to common FX trading mistakes.
Trading Styles For Traders Short on Time
Swing Trading – This strategy is sometimes considered as medium-term because the positions here are held within hours to a couple of days. As for the time investment, it is minimal and best suited for traders who are short on time.
Automated Trading – another strategy that traders who are short on time can use is Automated Trading. In this trading strategy, traders simply set the exit and entry criteria together with the trade size, allowing the market to do the remaining things.
Trading Style For Meticulous Traders With Vast Time To Research
Position Trading – this trading strategy works best for traders who are into the long-term holding of positions, many for months or years. Traders using this strategy are basing their decisions on the long-term fundamental factors of FX trading. Moreover, you will need to acquire large capital that can withstand the volatility of the market to evade any margin calls. You can also make use of stop loss to avoid a market with high volatility.
Trading Style For Traders Who Likes Instant Results
Scalp Trading – If you are the kind of trader that is decisive and wants fast instant results, then scalping is the best option for you. A scalper can open and close a trade just within a matter of minutes. They are often taking advantage of those price movements on small scale but with high leverage. Since everything here is fast-moving, profits and losses are realized just within a short span of time.
Consistency With Your Trading Style
Consistency is very important in trading as it will also take you to achieve consistent results. One of the common mistakes of novice traders is altering styles during times that their trades become unfavorable. Your personal judgment should not be made based on limited trades as every trade often don’t get that successful. If you think that your trading strategy is good, with reasonable risk management, then sticking to it can give you your desired results.
Traders do have different styles and personalities. No traders are the same, no matter who they are. There are traders who are comfortable with swing trading or position trading. Others also prefer scalping or day trading because of their short-term approach. No matter what you choose, remember that trading is for everyone. You will find the most appropriate strategy for you.