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February 15, 2020
There are several types of trading styles in the Forex market and you better know each of them properly. Depending on how a trader executes his transactions in the Forex market, you could be a long-term or a short-term one.
However, what does it mean to be a long-term or short-term trader in the Forex market? When it comes to the short term, for example, it could refer to some days or even minutes. This means you open and closes your position in the Forex market within a day.
Before you learn further about the variety of trading styles, it would be great to first comprehend some methods used by Forex traders to carry out their trades. In general, the ways traders execute their trades are separated into two primary approaches: discretionary and automated.
When it comes to discretionary approach, you as a trader become the one to execute and control your trades. Meanwhile, if you use an automated approach, your trading system is in charge to manage and initiate the trade. Then, what are the types of trading styles that you should know?
The first trading style that you should understand is scalping. Also known as a quick-paced trading style, scalping is super intense. That’s why some said that scalping may make you experience such a great deal of stress. However, you could still obtain a lot of profits by scalping.
Traders who apply scalping as their trading style would search for stable opportunity streams in the Forex market and typically hold their positions in a matter of minutes only. If you’re trading with this style, using a large leverage amount might be a good idea.
Even though scalping may give you a lot of profits, it could also cost you so much since there will by such high transaction fees. The other types of trading styles are day trading, swing trading, trend trading, news trading, carry trading, and macro-economic trading.
When we’re talking about day trading, this style is a bit similar to scalping. In this case, a day trader would hold their position within a day only, but they typically hold it longer than scalpers. Different from scalpers, day traders won’t enter and exit a position within minutes.
Meanwhile, swing trading refers to trading within a few weeks. In the Forex market, swing traders tend to hold their positions for 240 to 480 minutes. On the other hand, they may trade an hour or two in Futures or Equities markets.
Furthermore, you could also try news trading that focuses on fundamental analysis. Traders who are trading in this style typically take advantage of momentum after scheduled news related to the financial market announced. So, what are your favorite types of trading styles?
Whatever types of styles you use to trade in the Forex market are, it would be wasteful if you’re not using a good platform. To make sure your trading styles and strategies work well, you could consider dealing with the best Forex broker that utilizes MetaTrader 4.
MetaTrader 4 is a great Forex trading platform with various tools and abilities. This platform features everything you need to apply to any trading style. And one of the best brokerage companies that offer such a sophisticated trading platform is SalmaMarket.
SalmaMarket Forex broker makes it easier for a trader to trade in various styles thanks to its adept trading platform. More interestingly, opening a trading account with SalmaMarket makes it possible for you to enjoy various benefits including promos and deposit bonuses.
To conclude, every trader tends to have their favorite trading style and it could depend on their time, experience, and taste. Just make sure you open a Forex trading account with a trustworthy broker like SalmaMarket to enjoy any types of trading styles.
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