Your Forex Trading Style

Your style of currency trading in the foreign exchange market may say a lot about you as a person. But what does it actually say? Scalping You like fast action and fast profits. You do not make a lot of profit per trade, but you make a lot of trades per day, which can really add up. Advantage: 1-2% profit per day. Disadvantage: Extensive experience and knowledge required. Day Trading You buy and sell currency all in the same day. Risk shy, you never leave a position open overnight for fear of making losses. Advantage: Fewer trades keeps execution costs down. Disadvantage: Knowledge of technical analysis is a must. Swing Trading This is not your day job. You like part-time hours and working from the comfort of your own home. As with the day trader, you are risk averse. Advantage: Less time consuming and suitable for newcomers to forex. Disadvantage: Profit returns less than either scalping or day trading. Long-term Trading You can wait. Like a patient farmer, you remain calm, make your investments, check your charts, carefully calculate your trades and reap your rewards when the time is just right. Advantages: Execution costs are very low, taking very little away from your profits. Disadvantages: Hardly time consuming; you will not have a good reason to give up your day job, unless you find you are great at this game, in which case, quit the day job and take up golf.