Types of Forex Traders

The Forex market would be incomplete without the multitude of traders who do business in all hours of the day. These traders have different personalities and have different preferences.

Are you a Forex trader? What type of trader are you? See which among these personalities have the same attitude as you.

Types of Forex Traders

1.    Day Trader

•    The day traders are the most appealing and the most popular type of forex traders.
•    Day traders, as the name suggests, conduct trading and generate profits within the day. They use shorter timeframe charts, and look for quick turnover trades. They also don’t hold anything after the session close.
•    Day traders need to be attentive and patient; they also have to develop their logical skills.

2.    Technical Trader

•    Technical traders use technical analysis to trade; they also make the most of trading rules and models using previous price and volume information.
•    These types of traders rely on the premise of history repeating itself; prices move in trends, and the rise and fall of prices can somehow be predicted.

3.    Scalpers / Scalping Trader

•    Scalpers tend to trade for small gains; they take profits quickly with minimal exposure. They open and close a trade within minutes, and they take advantage of small price movements with large amounts of leverage.
•    These types of traders need skills to respond to market changes; stress is caused by screen time and frequent trading.

4.    News Trader

•    News traders make decisions based on news announcements since news and other economic reports tend to have impacts on the forex market.
•    News traders face a lot of risks because of the market’s volatility.

5.    Position Trader

•    The position trader looks to gain profit from holding long positions, and usually use either daily or weekly charts. With them, trading can last for a couple of months, and they aren’t affected by short-term fluctuations.
•    These traders are more interested in the market’s structural movements rather than the day trader’s short-term movements.

6. Long Term Investor

•    Long term traders tend to invest a lot of money, and expect to get twice or thrice the invested amount. They prefer to use either the weekly or monthly charts.
•    They benefit from their actions by having more reliable long-run profits, but they have to make sure they can cover volatile movements alongside open positions.

There are various types of Forex traders. Have you realized which type of trader are you? Understanding your trading personality makes you improve your tactics better, hence giving you more chances to profit.


Are you a Forex trader looking for an Arabic Forex broker in Egypt, here below is list for you to choose from: