All traders, no matter whether a professional player in the currency market or newcomer should develop an individual way of trading. The trader personal strategy can improve his trading performance on Forex market and make it more successful and profitable.
For a newcomer in Forex it is often a challenge to find and adopt a certain trading style and follow to it due to a lack of trading experience that leads to choose not right strategies.
The trader who searches the strategy that works best for trader, he should take into consideration all trading styles that exist in the Forex market. Also, the trader should know his financial capacities and his own potential.
There are three basic styles of trading: intraday trading, intraweek trading and long-term trading.
It means that all deals are made within one trading day and intervals between the opening and closing of trades take time from 2 minutes up to several hours. And this style of trading is more often used by Forex beginners.
The main advantage of this trading style is that it does not require large investments. All trades are short-term. And the intraday trading is recommended for traders who are very confident, quick to react and decisive.
In this style of trading positions may stay opened for ten days. For many traders intraweek trading is highly profitable. Intraweek trading gives to the traders a lot of free time during a trading session.
This style of trading means working with daily and weakly charts. The deals may stay opened even for a few months. The choice of trading instruments is limited. If the trader wants to achieve the success in long-term trading he should have such qualities as endurance and patience.