How To Become A Successful Forex Trader
One of the best ways to succeed in forex trading is to trade a time frame that fits your personality
. There are three major time frames categorized as day trading, swing trading and position trading. Now let's take a look at each time frame style to help you decide which is best for you to trade.Day trading or intraday trading are quick trades that often last anywhere from minutes to hours and take place within the same trading day. Day trading is also known as scalping and trades are very rapid, usually small in size and many trades are taken each day.
The advantages of day trading or intraday trading include little risk as each trade generally has a very tight stop loss and also small take profit levels. Scalping takes a lot of intense focus in order to manage each trade and watch the market fluctuations.
The cons of intraday trading are you can loss money very quickly and you also will pay a lot of money in commissions. A small mistake can turn into a huge loss in a very short amount of time.
Swing trades can last from anywhere from one day to several days or even weeks. Typically swing traders try to catch price retraces or trend reversals using indicators or price action to help tell the tale of the tape. Using swing highs and lows from recent price action traders use these points of reference for placing their entries and exits.
There are many advantages to swing trading which include that because of the higher time frames you are trading there are less possible signals during the day which makes trades easier to manage. Also the spread and commissions are less since you are taking fewer trades which helps a lot.
Among the few disadvantages of the swing time frame is that traders often enough become emotional tied to their position which causes them to hold onto losing positions longer than you should.
Position trading which is also known as trend trading is a buy and hold type method where positions can be open for anywhere from a few days, to a few weeks or even a few months or longer. Position traders like to get into a winning positions and build into that positions watching it grow bigger and bigger.
Some traders tell of the position trading style to be the easiest and most profitable. Fitting into any active lifestyles as often traded on the daily time frame it is also the most desirable! One signal period a day makes it very easy to manage and adjust new and open trade orders.
The biggest fear of any trend trader needs to be getting a losing position and holding it too long hoping it would come back. Often position traders can wipe out their entire trading accounts when they not only hold a position too long but actually average into losing positions.
Which time frame appeals to you and your personality? Are you the type of trader who likes lots of action and the rush of trading, or maybe do you like the detachment that swing trading or position trading brings? The first thing aspiring traders need to do is figure out which time frame suits them best before developing a trading method around the time frame.
by: Daren How To Use Credit Cards Safely Online Why You Are Not Making Money Online Free Casino Chips and Honest Online Casinos Trademarks Boost On Visibility Online For Your Website How To Make Money Online For Free Live Tv Stream Online Setting Up An Online Jewelry Shop: Some Tips To Follow Mrs Pacman Online Review- Play Mrs Pacman Online here! Why Is Dangerous to Buy Antibiotics Online? Online Payroll Services Fat Burning Furnace Book Online Ensure Better Online Results with PPC Advertising