I presume there is none of you who haven’t typed this question in google. And most likely, you were more puzzled afterward than before. In the sea of information, it is hard to find the right information for you. I made this blog with the intention to help traders gather information in a way that anyone can understand them, can benefit from it, and indeed learn something. When I started trading, at first I didn’t have mentor, or the one place where I could gather all information that I needed. My blog will cover all areas in Forex trading, you will ever need.
Scalping is very popular, yet the most dangerous type of trading. Scalpers need ultra-quick reaction times because they usually enter and exit trades in just seconds or minutes.
– very short term trading strategy
– taking multiple small profits on trading positions with a very short duration
– not suited for novice traders
– most accounts are lost with scalping strategies
2. Day Trading
Also a short-term strategy, but trade usually lasts for the duration of the day and they never hold positions overnight.
– trading plans based on technical analysis
– use of indicators
– a most typical type of retail trading
– need high skill and experience to be profitable
3. News Trading
Fast and stressful type of trading. Price doesn’t have to follow the news, so it is not meant to be used as the sole indication of price movement, but if used together with technical analysis, it can be profitable even for medium experienced traders.
– use of an economic calendar
– use of stop loss is highly advised
– skill of technical analysis is pre-required
4. Swing or Momentum Trading
This is my personal favorite type of strategy. Market swings are possible to predict, and therefore to know where to enter and exit your trade. I advise you to read more about Wave strategy and swings in the book I promote on my web, from renovated Forex trader, Chris Svorcik. Wave strategy is also based on support and resistance levels, that can easily be tracked with the use of Fibonacci levels.
– medium-term trading strategy
– amateurs can trade it, with minimum acquired knowledge
– use of the Fibonacci tool
5. Trend Trading
Very popular longer-term strategy. You will find that most professionals are trading trend systems. This strategy often involves buying on pullbacks in uptrends or selling on rallies in downtrends.
– best for traders that learned to keep emotions in check
– require patience and emotions control to get results
– most steady systems are using trend strategy
If you are new to a Forex, I recommend you search for a Trend and Swing trading. But with any type of trading, you first need to master your money management. If that is not correctly set up, you will most likely fail with any system.
If you already acquired some skill, then it mostly depends on your character. Traders that have much free time to watch charts for many hours during the day, and are impatient for results, will most likely pick day trading, while those with less time, will pick news trading.
I personally am using a system that is based on both Swing and Trend (Ultima).
Wish you happy trading, regardless of the type of your system!