Trading is one of the smartest businesses in the world. Due to the advancement of the trading platform is becoming more and more popular this day. In the trading industry, not all the trader looks the market in the same perspective. The charts always look different for different traders. Often a trader who is thinking about going for a long order, there will be another trader who would like to go for a sell in the same currency pair.
They both can be right and this happens because of their trading personality because different traders have different types of trading styles and personalities. Some like to go for a long trade and others like to go for short-time trades. There are four types of trading styles according to traders’ preferred time frame. They are:
- Day trading
- Swing trading
- Position trading
Choosing a trading style according to the trader’s personality is a very hard task when someone has just joined trading. But it is really important for a trader for planning a business strategy and wants to make a career in trading. Because if you are not trading according to your personality then you are just forcing to do something that doesn’t go with your preferred trading style.
We know that forcing to something never gives a positive result. Because of that in this article, we are going to talk about different types of trading styles so that you can choose a style according to your personality.
Scalping is the most complicated type of trading which gives very fast results. In scalping trades are kept open just for few minutes or a second. The scalping trading style is very much effective for the traders who have less patience and like to get instant results. But when you are a scalper then you must need to be very active and should able to make trading decisions very fast without any hesitation. This trading style is not for those traders who often get distracted. Scalper often prefers the shortest time frame to identify potential signals. If you chose to scalp the market, navigate here and learn more about the advanced art of trading.
Day trading is for those people who do not like to keep any pending work for tomorrow. Those people like to complete their daily tasks daily and without finishing that they will not go to bed. Daily traders like to keep open their position for multiple hours but will never keep their position for multiple days. They will not go to sleep in an open position because of the fear of price movement during the night.
A swing trader usually likes to keep their position open until they get a positive result. If this style trader must have to be confident enough because they might need to keep their position open overnight to reach his required position. So traders get nervous while they are away from their trading desk and they have an open position. Traders who do swing trading often use bigger stop-loss orders to give their trade proper breathing space.
Position trading is a kind of trading where traders like to keep their position open for multiple days and sometimes even for multiple years. This type of trader always tries to gain hundreds and thousands of pips and will not become tensed if the market goes against them for 50 pips. So if a trader becomes nervous when the market goes against them and very impatient for making any trading decision then position trading is not for him.
Position traders will always ignore other traders’ opinions before making any trading decision because they often trade on the belief of economic recession which might takes years. So if you are easily manipulated by news then position trading is not for you and you just have to be very patient to make a profit for position trading.
Choosing a fixed trading style is very important for making a smooth improvement in trading and in optimizing your knowledge. So we hope this article helps you to choose a trading style according to your personality and remember that no trading style is better than another. The trading style which fits your personality will be more effective only for you.