From Stock Trading Software Review:
The Position Trader
A position trader is one that has a family with a wife that is demanding, a good number of children, and many pets. He is more likely a professional to be able to support such a large family. Aside from the profession he has, he also wants to put money in the forex market. However, he is not one that has the time to sit all day in front of the computer. However, he is the type who knows about the economies of various countries and manages to keep up with data regarding said economies. His situation is ideal for position trading.
An investor who is into position trading is one who holds his position for weeks or even months. He trades only a few times a year and would use fundamental analysis in trading. This means that he only spends a couple of hours weekly to study economic reports and from there decides the direction to take when trading. A position trade is long-term and thus targets larger profits. His losses however could be large as well. This trade is known for its reward-to-risk-ratio.
A position trader is the type who gets a life while forex trading on the side. He may have another profession and time with his family since only very little of his time is occupied by trading. He can afford to have a personality that will not require him to make quick trading decisions. His attitude towards forex trading is more on the long-term trend.
The Swing Trader
A swing trader would be someone who can also handle another job at the same time as the forex trading business. He is the type however who will hold trades shorter than that of the position trader. He is able to spend a couple of hours daily to study the market, unlike the position trader who does it weekly. He is the type who would try to predict currency movements in a shorter term, but may hold his position for a few days as he may see fit. He may even decide to hold his trade for a few weeks if the momentum seems to favor that move.
A swing trader would be the type to dedicate at least an hour to check the forex market. He is also one that will keep a close tab of the economies of the world at least an hour a day. He can base from this the volatility of the currencies he watches. He will also determine if it is best to keep his trade for a few days or a few weeks. Technical analysis is his best weapon in his choices with the help of trend lines, channels, moving averages, etc. He may be able to target limited profits and at the same time, limited losses. He may need to check his position daily but for very little time only, allowing him to take on other endeavors and activities.
The Day Trader
The day trader is one that has trading positions that open and close daily. There may be days where he closes only one position and there are also days when he trades several times. Whatever the case may be, one thing for sure is that he will close all his positions before the market ends for the day, which is at 5PM. He would be the type that is always tuned in to the forex market to make sure he does not miss a good trade. He would most likely use small stop losses, as he is risk averse.
A day trader is one that has forex trading as his only means of livelihood since all his time and attention will be required by it. He has to watch the market full-time and has a big account enough to afford the needs in his life. He may update himself with daily news but he relies mainly on technical analysis with his trading decisions. He is one who follows the signals. This type of trader may lose below half of his trades but has his average wins twice the average loss. The long run profit is greater than losses most of the time.
The Fourth Type
The three types of traders above may be the traditional ones. However, there is a fourth type, the one that may not be equipped with enough forex knowledge to make it successful in this field – the type who keeps losing despite the experience and knowledge that was gained, and simply the one that may be too lazy to do all the analyzing and studying of data and trends. If you fall under this type all is not lost. You still can make it good in forex trading.
The Position Trader
A position trader is one that has a family with a wife that is demanding, a good number of children, and many pets. He is more likely a professional to be able to support such a large family. Aside from the profession he has, he also wants to put money in the forex market. However, he is not one that has the time to sit all day in front of the computer. However, he is the type who knows about the economies of various countries and manages to keep up with data regarding said economies. His situation is ideal for position trading.
An investor who is into position trading is one who holds his position for weeks or even months. He trades only a few times a year and would use fundamental analysis in trading. This means that he only spends a couple of hours weekly to study economic reports and from there decides the direction to take when trading. A position trade is long-term and thus targets larger profits. His losses however could be large as well. This trade is known for its reward-to-risk-ratio.
A position trader is the type who gets a life while forex trading on the side. He may have another profession and time with his family since only very little of his time is occupied by trading. He can afford to have a personality that will not require him to make quick trading decisions. His attitude towards forex trading is more on the long-term trend.
The Swing Trader
A swing trader would be someone who can also handle another job at the same time as the forex trading business. He is the type however who will hold trades shorter than that of the position trader. He is able to spend a couple of hours daily to study the market, unlike the position trader who does it weekly. He is the type who would try to predict currency movements in a shorter term, but may hold his position for a few days as he may see fit. He may even decide to hold his trade for a few weeks if the momentum seems to favor that move.
A swing trader would be the type to dedicate at least an hour to check the forex market. He is also one that will keep a close tab of the economies of the world at least an hour a day. He can base from this the volatility of the currencies he watches. He will also determine if it is best to keep his trade for a few days or a few weeks. Technical analysis is his best weapon in his choices with the help of trend lines, channels, moving averages, etc. He may be able to target limited profits and at the same time, limited losses. He may need to check his position daily but for very little time only, allowing him to take on other endeavors and activities.
The Day Trader
The day trader is one that has trading positions that open and close daily. There may be days where he closes only one position and there are also days when he trades several times. Whatever the case may be, one thing for sure is that he will close all his positions before the market ends for the day, which is at 5PM. He would be the type that is always tuned in to the forex market to make sure he does not miss a good trade. He would most likely use small stop losses, as he is risk averse.
A day trader is one that has forex trading as his only means of livelihood since all his time and attention will be required by it. He has to watch the market full-time and has a big account enough to afford the needs in his life. He may update himself with daily news but he relies mainly on technical analysis with his trading decisions. He is one who follows the signals. This type of trader may lose below half of his trades but has his average wins twice the average loss. The long run profit is greater than losses most of the time.
The Fourth Type
The three types of traders above may be the traditional ones. However, there is a fourth type, the one that may not be equipped with enough forex knowledge to make it successful in this field – the type who keeps losing despite the experience and knowledge that was gained, and simply the one that may be too lazy to do all the analyzing and studying of data and trends. If you fall under this type all is not lost. You still can make it good in forex trading.
Nice summarry!
