Every trader has their own mind set up for trading or you can say their own strategy to trade in Forex. Some love to trade for a short time on the other hand other like to hold the trades and gain effective profit through that. Some of the widely known trading strategies are, for example, Scalping, Long-term, Swing trading, Day trading ETC.
- Scalping = It is a way to trade for a short time with minimum profit. A lot of traders use to trade for a short period which is called Scalping. Any trader holds a trade for just less than one to five minutes, which is called scalping, with the purpose of short trading and gain a small amount of profit. This type of trading required low spread and lots of fluctuations in the market and it can’t be held for a long time. This kind of trader mostly trades into Forex’s major pairs, which fluctuates more in the market. For this kind of trades, they have to act around major pair’s news time so that they can open the order on a quick basis and can gain the benefit of the news impact
- Long-term = As we discussed on the above topic about Short trading/ Scalping, which is held for a very small amount of time instead of that traders are also used to trade for long trade also called position trading. For position trading traders have to notice for long-term trading which can behold for Weeks, Months & can be for a whole year based on analysis. This type of trader always focuses on big profits and good strategy this type of trading is far different from other trading ways and no need to monitor. As position traders are not concerned with minor price fluctuations or pullbacks.
- Swing trading = Swing Trading is a kind of Day trading but there’s Lil difference between them because the swing trades are open for a short time like for few days and less than day trading holders. For Swing Trading, Traders always use some rules and analyses which are Fundamentals and technical analysis. Its also based on the market movement. Traders can gain a small profit in a short time.
- Day trading = Day Trading also for open some trades for a short period. Day trades open several trades for few minutes to hours like they open trades and close before overnight. They gain the profit in short amount according to the market fluctuation. Traders are mostly active during the news time zone and open the trades at the right time they mostly use a high amount of leverage and good margin to give the proper spot to the whole day manage the momentum trade. Day traders are mostly well-educated and can use good strategies for the trades.
These four are the most important way to trade & earn an attractive income. Most of the traders use these types of strategies to gain profit So dear traders you should also try this and tell us about your experience in our comment section.