Forex Trading Styles

View PDF | Print View
Total views: 300
Word Count: 403

When trading currencies online, there are several trading styles that forex traders can profit from, the following is a list of the most common trade types complete with a brief description of each style of trade.

Scalping

A style of trading that is designed to capitalize on small moves, it involves the rapid and repeated buying and selling of currency pairs, the typical objective for a scalp trade is 4-15 pips. The best scalping opportunities are found when the currency market is very active (Euro open till European Close) or during News Events. Scalp setups are typically found using charts in smaller intraday timeframes such as a 1, 5, and 15 minutes. Scalping requires a lot of market understanding and is not for the beginning currency trader. The professional scalper uses a specially designed trading platform, for example Currenex or a forex broker which allows scalping .

Day trading

A day trade is a position initiated and closed out the same trading day (before 5PM NY time), the typical objective for a day trade is 15-100 pips. The best day trading opportunities are found during the EURO and US sessions. Day trade setups are typically found using intraday charts with medium length timeframes such as a 15, 30, 60 and 240 minutes. Most online currency traders are day traders and typically, they use technical analysis (support & resistance, chart patterns, indicators,..) to set up their trades.

Swing Trading

The main difference between a swing trade and a day trade is the length in holding the open position, typically, swing traders will hold their open position(s) 2-5days looking for 100-250 pips profit potential. Trade setups are typically found using daily charts and most common, swing traders use technical analysis (support & resistance, chart patterns, indicators,..) to set up their trades.

Position Trading

The main difference between a position trade and a swing trade is that position traders will normally have a longer time horizon than swing traders for holding a position in a currency pair, typically, position traders will hold their open position(s) 5-50days looking for 250-1000 pips profit potential.
Trade setups are typically found using daily, weekly and monthly charts , normally, position traders use both technical analysis and fundamental analysis to set up their trades.

Long - Term

Trading Long term currency traders usually hold positions for month or even years profiting from a long term trend. They usually use both fundamental and technical analysis to make trading decisions.



Forex Trading Arena

About the Author

It's All About Forex Trading, Forex articles, Forex Training and Forex Strategies. fx trading can be very easy if you know the ins and outs of Forex trading arena.

More articles in this Category

1: Search For Monetary Independence Making Use Of The Following FOREX Trading Recommendations!
2: Which Forex Trading Robot Is Best For You?
3: Forex Trading Primer
4: Forex Trading Ideas
5: Why You Should Get Started With Mini Forex Buying and selling
6: ThinkForex Is An Effectivce Dealing
7: The most Exact Method to Trade Forex Presently
8: Short Time period Charts and ACM Foreign currency trading
9: The right way to Take pleasure in Fx Grid Buying and selling
10: Time Setting Your Becoming Successful And Selecting Your Time-frame As A Trader

Latest Articles

1: What to Look For When Picking Your Forex Broker
2: How To Appear across The Biggest Foreign exchange Investing Tactics
3: Live Forex Signals
4: Battling With Forex Currency Trading? Read through These Tips
5: Locate The Simplest Way To Buy and sell On The Foreign Exchange Market Using These Suggestions
6: Search For Monetary Independence Making Use Of The Following FOREX Trading Recommendations!
7: Which Forex Trading Robot Is Best For You?
8: Trading with HY Markets
9: MGForex Broker Vs eToro Forex Investing Platform
10: Forex Profit Multiplier Review