What Type of Trader Are You?

Imagine a doctor who can't tell you what his specialized area is, do you think you can still entrust your life to him? Similarly do you think that you can be successful in trading if you do not know what type of trader you are?

Therefore in this article, I will list out the various type of trader you can be and then you shall learn how to trade like the type of trader you want to become.

1) Forex Scalper - Forex scalping is a very popular way of trading as it allows those traders who have not much time to monitor the chart to enter and exit the market within 10 to 15 minutes. Here are the pros and cons of being this type of trader:

Pros:

- Able to see profit fast
- Do not need you to spend a lot time reading the chart

Cons:

- Lost a lot of money in a short time if not done properly
- Require very accurate entry position

2) Forex Day Trader - Being a day trader means that you will enter your trade and exit them at the same day. Unlike the scalper, the day trader will enter a trade and allow it to run for more than 30 minutes or even hours before they exit their trade.

Pros:

- Can grab more profit compared to scalping the market
- Do not require very precise entry point

Cons:

- Need more time to analyse charts and patterns
- As day trader usually stays in the market for a long time, there are chances of the market taking back their profit.

3) Forex Position Trader - This is a type of trader that enter a trade and allows it to run for days, weeks or even months before they exit their trade. This is a trading style that suits those traders with little time everyday to read the chart. Being a position trader only requires you to read the chart maybe every 3 to 4 days once to adjust your stop loss.

Pros:

- Can make profits varying from hundreds of pips to even thousands
- Do not need to spend time everyday reading the charts

Cons

- Need to have a large capital as the stop loss for position trader is usually very large
- Similar to the day trader, the position trader will give the market more chance to reverse and take their profit away

- Affected by news as the trade stays in the market for a long time

I am personally a day trader who does some scalping as well and I suggest that you spend sometime to read through the above information and decide what type of trading styles suit you most and then spend time to develop trading strategy that fits your style.

Find out how you can become a forex scalper from this forex scalping system that Kelvin is using himself.

Kelvin provides free forex trading signals every week on his blog to help fellow traders grab more profit from the market. Learn how he analysed the market and how you should do yours.

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