Exploring the Various Types of Forex Trading Styles - Learn to Trade
Login
Free Forex Signals Join Our Telegram

Exploring the Various Types of Forex Trading Styles

Estimated Reading Time: 5 minutes
Article Rating:
Based on 1 vote
Login to rate this article.

Ali Qamar

Updated:


Forex trading has turned out to be the best choice for most investors lately. The beauty of trading forex is that it can be done anywhere and at any time.

Our Forex Signals

image
image

Eightcap - Regulated Platform With Tight Spreads

Our Rating

Forex Signals - EightCap
  • Minimum deposit of just 250 USD to get lifetime access to all the VIP channels
  • Use our Secure and Encrypted Infrastructure
  • Spreads from 0.0 pips on Raw Accounts
  • Trade on the Award-Winning MT4 & MT5 Platforms
  • Multi-jurisdictional Regulation
  • No Commission Trading on Standard Accounts
Forex Signals - EightCap
71% of retail investor accounts lose money when trading CFDs with this provider.
Visit eightcap Now

 

However, what makes it more interesting is the fact that you choose a trading style that suits your needs.

It, therefore, means that you can trade freely according to individual personality, risk tolerance, and knowledge.

Forex Trading Like other financial markets, the forex market can be traded using different trading styles. The following are some of the leading trading styles.

Sort By

4 Providers that match your filters

Payment methods

Trading platforms

Regulated by

Support

Min.Deposit

$ 1

Leverage max

1

Currency Pairs

1+

Classification

1or more

Mobile App

1or more
Recommended

Rating

Total cost

$ 0 Commission 3.5

Mobile App
10/10

Min.Deposit

$100

Spread min.

Variables pips

Leverage max

100

Currency Pairs

40

Trading platforms

Demo
Webtrader
Mt4
MT5

Funding Methods

Bank Transfer Credit Card Giropay Neteller Paypal Sepa Transfer Skrill

Regulated by

FCA

What you can trade

Forex

Indices

Actions

Cryptocurrencies

Raw Materials

Average spread

EUR/GBP

-

EUR/USD

-

EUR/JPY

0.3

EUR/CHF

0.2

GBP/USD

0.0

GBP/JPY

0.1

GBP/CHF

0.3

USD/JPY

0.0

USD/CHF

0.2

CHF/JPY

0.3

Additional Fee

Continuous rate

Variables

Conversión

Variables pips

Regulation

Yes

FCA

No

CYSEC

No

ASIC

No

CFTC

No

NFA

No

BAFIN

No

CMA

No

SCB

No

DFSA

No

CBFSAI

No

BVIFSC

No

FSCA

No

FSA

No

FFAJ

No

ADGM

No

FRSA

71% of retail investor accounts lose money when trading CFDs with this provider.

Rating

Total cost

$ 0 Commission 0

Mobile App
10/10

Min.Deposit

$100

Spread min.

- pips

Leverage max

400

Currency Pairs

50

Trading platforms

Demo
Webtrader
Mt4
MT5
Avasocial
Ava Options

Funding Methods

Bank Transfer Credit Card Neteller Skrill

Regulated by

CYSECASICCBFSAIBVIFSCFSCAFSAFFAJADGMFRSA

What you can trade

Forex

Indices

Actions

Cryptocurrencies

Raw Materials

Etfs

Average spread

EUR/GBP

1

EUR/USD

0.9

EUR/JPY

1

EUR/CHF

1

GBP/USD

1

GBP/JPY

1

GBP/CHF

1

USD/JPY

1

USD/CHF

1

CHF/JPY

1

Additional Fee

Continuous rate

-

Conversión

- pips

Regulation

No

FCA

Yes

CYSEC

Yes

ASIC

No

CFTC

No

NFA

No

BAFIN

No

CMA

No

SCB

No

DFSA

Yes

CBFSAI

Yes

BVIFSC

Yes

FSCA

Yes

FSA

Yes

FFAJ

Yes

ADGM

Yes

FRSA

71% of retail investor accounts lose money when trading CFDs with this provider.

Rating

Total cost

$ 0 Commission 6.00

Mobile App
7/10

Min.Deposit

$10

Spread min.

- pips

Leverage max

10

Currency Pairs

60

Trading platforms

Demo
Webtrader
Mt4

Funding Methods

Credit Card

What you can trade

Forex

Indices

Cryptocurrencies

Average spread

EUR/GBP

1

EUR/USD

1

EUR/JPY

1

EUR/CHF

1

GBP/USD

1

GBP/JPY

1

GBP/CHF

1

USD/JPY

1

USD/CHF

1

CHF/JPY

1

Additional Fee

Continuous rate

-

Conversión

- pips

Regulation

No

FCA

No

CYSEC

No

ASIC

No

CFTC

No

NFA

No

BAFIN

No

CMA

No

SCB

No

DFSA

No

CBFSAI

No

BVIFSC

No

FSCA

No

FSA

No

FFAJ

No

ADGM

No

FRSA

Your capital is at risk.

Rating

Total cost

$ 0 Commission 0.1

Mobile App
10/10

Min.Deposit

$50

Spread min.

- pips

Leverage max

500

Currency Pairs

40

Trading platforms

Demo
Webtrader
Mt4
STP/DMA
MT5

Funding Methods

Bank Transfer Credit Card Neteller Skrill

What you can trade

Forex

Indices

Actions

Raw Materials

Average spread

EUR/GBP

-

EUR/USD

-

EUR/JPY

-

EUR/CHF

-

GBP/USD

-

GBP/JPY

-

GBP/CHF

-

USD/JPY

-

USD/CHF

-

CHF/JPY

-

Additional Fee

Continuous rate

-

Conversión

- pips

Regulation

No

FCA

No

CYSEC

No

ASIC

No

CFTC

No

NFA

No

BAFIN

No

CMA

No

SCB

No

DFSA

No

CBFSAI

No

BVIFSC

No

FSCA

No

FSA

No

FFAJ

No

ADGM

No

FRSA

71% of retail investor accounts lose money when trading CFDs with this provider.

The Main Trading Styles

Depending on the trader’s preference, there’re several trading styles that one can choose. Every style comes with its advantages and disadvantages hence ensure that you choose a style that fits you the best.

Scalping

Scalping is an extremely rapid trading style whereby scalpers make trades only within a few seconds of the trades in opposite directions.

Scalping is suited to active traders who can make immediate decisions as well as act to the decisions without hesitation. A trader looks to make a profit from minimal changes in the price.

Therefore, it’s practical to say that impatient traders usually make the best scalpers as they expect trades to be profitable instantly, and can make exits when things fall apart.

Scalping requires a lot of focus and concentration with clear exit strategies to avoid significant losses that can wipe out all the profits previously accumulated.

The active market is the best for scalping, and reasonable profit potential when scalping is between 4 to 15 pips.

If you decide to the scalp, here are some of the things you must consider:

  • Trade only most liquid pairs
  • Trade during the bust times of the day
  • Focus on one pair first
  • Account for the spread
  • Avoid trading around significant news releases
  • Have a good money management

Day Trading

Day trading style is usually suitable for those traders who prefer to start and complete their tasks within the same day.

The objective in day trading is to gain some profit of between 15 to 100 pips, and the most fruitful options occur during the US and Euro trading sessions.

In day trading, there’s no holding of trades overnight. The style is best suited for traders with enough time during the day for analyzing, executing, and monitoring a trade.

Day traders use the help of the patterns on charts, resistance, and support indicators to make their trades.

Basically, they favor using technical analysis in conducting trades. Some of the days, trading types include trend trading, countertrend trading, and breakout trading.

Swing Trading

Swing trading is for those traders ready to be patient to hold the trades for at least several days at a time.

For instance, if you can’t monitor the charts all day long, but have at least a few hours to analyze the market each night, then swing trading style is the ideal option.

Typically, swing trading keeps a trade open for about 2-5 days while looking for a profit of between 100-250 pips.

Also, swing trading requires a lot of calmness as sometimes trades may go against the trader during holding.

Being a swing trader requires that you be patient, never mind holding a trade for several days, don’t mind large stop losses, be calm, and be willing to take few trades but ensure trades are good setups.

Position Trading

The most extended-term trading style is position trading, whereby the trades last arguably for several months or even several years.

Position trading requires an excellent understanding of the fundamentals and is basically reserved for ultra-patient traders.

The fundamental themes are essential in this category as they are the ones to be focused when analyzing markets.

The time that a position trader can hold the trades is between 5-50 years while looking at a profit potential of between 250 to 1000 pips.

Long-Term Trading

Forex trading As the name suggests, long-term trading is all about holding an open trade for several months or years to profit from the currency’s trend.

Long-term traders make use of technical as well as fundamental analyses in making their trading decisions. Traders make an average of 10 trades per year.

 

AvaTrade - Established Broker With Commission-Free Trades

Our Rating

  • Minimum deposit of just 250 USD to get lifetime access to all the VIP channels
  • Awarded Best Global MT4 Forex Broker
  • Pay 0% on all CFD instruments
  • Thousands of CFD assets to trade
  • Leverage facilities available
  • Instantly deposit funds with a debit/credit card
71% of retail investor accounts lose money when trading CFDs with this provider.

 

 

Conclusion

No matter the trading style you chose, ensure that it’s genuinely the style that suits your personality.

Constant changing of trading styles sometimes can lead to trouble is can be a sure way to making significant losses.

Nevertheless, you should be flexible enough to understand when a particular trading style isn’t working for you.

But you should always remain faithful to your trading style as it will reward your loyalty eventually.

Share with other traders!

telegram
Telegram
forex
Forex
crypto
Crypto
algo
Algo
news
News