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Does trading styles matter in forex trading?

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Alright! Forex trading styles can be described as being based on the risks associated with different choices, the approach to take, and the environment. In general, the risk-reward decision model for Forex trading is: If the risk is greater, don't trade; if the risk is smaller, trade.

There are different type of trading styles in forex trading: we have the most popular scalping, day trading, swing trading and position trading.

Scalping

I is the process of buying and selling of currency pair within minute in the goal of making profit. 

Day trading:

This involves the buying and selling of currency pair in the hope of making profits, here the type of traders open and close trades within a day unlike scalpers.

Swing trading:

These are set of individuals who open and holds a trade for few days, and most time weeks or months depending on the trader, these are traders who have full time job and students who take trading as a part time business.

Position trading:

These are the ones who open trades and in most cases leaves it open to run for months, some years. these are investors with deep pockets who pay more attention to fundamental analysis unlike other trading styles who makes money on little change in market prices

In conclusion trading styles matter a lot, without getting to understand yourself as a trader, building a trading strategy will be difficult and that is why traders should consider their trading style before choosing a strategy to use.

I hope this is helpful! feel free to ask your questions, will do our best to get answers to you.

 
Posted : 30/07/2022 3:17 pm
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