Forex trading is popular day by day in the trading community. The magic of the forex market is anyone can trade anytime because the forex market is open 24 hours. The time flexibility and volatility of the market is interested people to trade in the forex market. Everyone trade in the forex market for the money and think they are rich very soon by the limitless earning process of forex trading. But If you think to make money from forex then you need to learn first. There are many types of fx traders around the world. Which type of fx trader makes a profit and you need to follow them to make your profit maximize. It is explained below to follow their trading style and learn for them.

Type Of Fx Trader

1. Position Trader

Position trader trade long-term basis. They hold their trade minimum one week to a year. This type of fx trader enters the market for the fundamental analysis. They did not think short-term gain in the market. If the fundamental growth of a country increases then they buy the currency and hold the position before their estimated value of the currency peak point. In the short-term loss, they did not sell their currency and maintain a huge amount of money in their account to hold the position of the trade. Position traders have more money on their balance to hold the trade because in a long-term basis. In the long term market retrace more than 50% of trade. So, to lose recovery more balance need in the position trading account.

2. Swing Trader

Swing traders hold their position for more than two weeks. They analyze market fundamental and technical basis. When a fundamental news release they enter in the market for more volatility of the market and with the technical analysis find out exit position of the trade.

3. Day Trader

Day trader trading style is they hold a position of a trade within a day. To trade of this style, a day trader needs to focus the short-term price fluctuation and analyze the market only technical analysis. They always avoid fundamental analysis and big impact news. When any news release they did not trade in this time. Day trader holds a trade overnight their trade success or loss measure within overnight. If their trade loss they close the position of their trade.

4.Scalper

The scalper is an fx trader like a day trader. But the main difference is scalpers hold theirs within a minute. This type of trading style is very risky. They trade profit and loss depend upon technical analysis only. All of the newbie fx traders try to trade as a scalper because they think this type of trading style is very profitable and profit and loss measure within a minimum time frame. But scalping is a very risky trading style and this type of trader’s mental health is not good. So, their social life hampers them over trading and they live a stressful life.

5. News Trader

News traders trade on the major news of the forex market. Major news impacts the market on a very short-term basis and creates more volatility. News traders use the volatility of the market to make a profit. But this type of trader loss more money. If the market moves the opposite direction of their position. News trading is dependent upon market sentiment by the news release. Lack of sentimental analysis news traders lose money. Market sentiment is very important for the news trading.

 6. Algorithmic Trader

Algorithmic trader trade depends upon computer programming. It is also called robot trading in the forex market. Algorithmic trader code their trading style in a program and run the program in the market. This robot automatically trades and open and close the trade position. This type of trading is very effective to make a profit. But an individual’s trade did not trade this type of trading style.to trade use of robot, talented computer programmers need to fix the error of the program error. Fx market is very dynamic and always needs to change the computer program to trade by the robot. Algorithmic trading is very profit for the market makers and financial institutes. It is very costly to develop an algorithmic trading robot.

How Can You Develop Your Trading Style?

It is very important to develop a trading style for an fx trader. Without a trading style or strategy, it is very difficult to make a profit from the forex market. The main cause of losing of money in forex market is a trade that does not a trading style or strategy. To develop a trading strategy. It is a time-consuming process. At first, you need to learn the basics of market fundamental and technical analysis. Then try to develop a trading style to trade the market. Trading style depends upon human psychology. So, find yourself what is your trading style.

Bottom Line:

Fx trader want to rich quickly but they did not focus the process of make money. They only focus on money. Without maintain forex trading rule end of the day trader lose money. Every trader is unique and different of their trading style. So, if you want to make money from forex trading then you must find of the trading style of your personality.