Trading Styles can be shaped according to a trader’s time constraints, profit goals and personal strengths.
While most traders have the same goals, they use a variety of different trading styles to achieve those goals.
No one trading method is better than the others.
The difference between different trading styles is usually the length of time you intend to trade, the timing of your entries, and in some cases the frequency of trading.
There are four main trading methods:
- Flipping
- Day Trading
- Swing Trading
- Position Trading
The difference between styles depends on how long the trade is held.
- Scalping transactions are only held for a few seconds, or at most a few minutes.
- The duration of day trading ranges from a few seconds to a few hours.
- Swing trades are typically held for a few days.
- Position trades can be held for periods ranging from a few days to a few years.
The table below provides the typical time frames you would expect a trader to use.
Choosing the trading style that best suits your personality can be a daunting task for new traders, but it is necessary for their long-term success as a professional trader.
One of the biggest mistakes that beginner traders often make is changing their trading style (and trading system) at the first sign of trouble.
Constantly changing your trading style or trading system will definitely blow up your account.
Once you have adapted to a particular trading style, continue to be faithful to it and it will reward your loyalty in the long run.
Choosing a trading style requires the flexibility to understand when a certain trading style doesn’t work for you, but it also requires consistently sticking to the right trading style, even if it underperforms.
If you want to learn more foreign exchange trading knowledge, please click: Trading Education.
