The incredible beauty is the diversity of people is the unity of people, united under one flag despite differing in caste, culture, language, or religion. It is like children having different traits in character and personality in one big family. Similarly, you find other individuals contributing to the success of any organization or team sport. There are white-collar and blue-collar workers in a company because they have different skills and experience.
When it comes to sports, those who are good at playing football may not be good tennis players, while not everyone has a different role in basketball. The goal of a factory worker or football player is to achieve a target though the means of achieving it may not be the same.
It is similar to forex trading, where thousands of players differ from each other. If you are keen to know more about forex trading and the best forex brokers, you can follow reports and analyses in reputed financial newspapers and websites. The unique style of forex traders reflects their personality and lifestyle. Some are patient enough to play the waiting game, the hawk-eyed ones who swoop on opportunities instantly, the perennial gamblers willing to take risks or those who sharpen their trading skills through trial and error. Whatever approach they choose, their common goal is to make money in the foreign exchange market.
There are a variety of trading plans you can adopt as a forex trader, but it is vital to choose a strategy to suit your unique personality. It largely depends on your traits, such as how you control emotions, execution style, and your knowledge of market trends. At the same time, the difference in trading styles is relative to the length of time needed for a trade. Developing a style that best suits your personality gives you a greater chance of making profits as a trader because you have to cut your cloth according to your coat instead of overdrive.
It is also better to be consistent without making knee-jerk reactions and pressing the panic button at the first sign of trouble which can have far-reaching consequences. Not all athletes can run fast, leap further or higher or have loads of endurance. Once you have chosen a particular style and are comfortable with it, stick to your guns, come what may.
This article looks at the V most common forex trading personalities that make the forex market a unique playing field.
A trader who can wait for hours calmly is a sniper. He will sit quietly and wait until perfect conditions to pull the trigger on a trade. These traders wait until they fulfill their requirements before firing one bullet, which is generally accurate. A sniper’s personality trait is similar to traders who wait for the price to hit their desired level after careful technical analysis of the market conditions. Since they exercise extreme caution before hitting the bulls-eye, they can reap high rewards because the risk is low.
Day traders who indulge in quick trading and are content with small winnings are scalpers. They are aggressive traders like sprinters who like to dash to the finish line more often than not during a single session. They usually try to take advantage by executing transactions with a risk-reward ratio of 1 to 1, expecting minimal profits. Scalpers are quick on the draw, often making decisions within seconds. Ironically, impatient people are the best scalpers because they are hungry to make profits. Nonetheless, they are typically focused and action-oriented traders, with their volume of wins leading to a higher rate of success overall.
Traders who come out with guns blazing with multiple transactions are known as artillery. They learn by trial and error by trading as much as possible until they hit the jackpot. You can use artillery as a weapon to fire over a large area through the timing and precision may not be perfect. But when the heavy barrage lands on target, it makes up for misses. Similarly, the artillery trader makes multiple transactions quickly and is willing to endure small losses before hitting it big to make up for it with a bonanza.
Swing traders are like long-distance runners preparing for a marathon. They have the endurance to hold trading positions ranging from several days to several weeks. They spend hours on technical analysis of the market while following the economic calendar to be aware of volatility spikes in an event. The relatively low pace makes swing trading suitable for part-time traders who don’t have time to monitor their charts continuously during the day. Swing traders also need to be calm when the going gets rigid or not nervous because they almost always have to hold overnight positions.
Position traders have to prepare much more than a marathon runner for the long haul. It is akin to navigating during a rally to hold your position for several weeks, months, or even years. Without a doubt, position traders need plenty of patience and the ability to rein in emotions when profits are low. They must keep faith in the fundamentals, and you should not sway by popular opinion. Ideal for traders with time, knowledge, and energy to research, this trading style requires significant capital to withstand any potential volatility.
Choosing a trading style requires consistency and flexibility. You have to adjust when a strategy is not working and stick to a particular style even when the chips are down. Once you have picked a specific style, remain faithful to it to achieve rewards in the long run.