HFM information and reviews
HFM
96%
Octa information and reviews
Octa
94%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%

Scalping: 3 Forex Trading Styles to Try


Just as a soldier doesn’t willingly run into battle unarmed, a successful trader shouldn't enter the market without a strategy.  

Trading is not a game of chance - if you open positions aimlessly, it’s only a matter of time until your deposit is lost for good. Professional traders know how to plan their strategy, implement it properly, and adjust it to fit current trading conditions. If things take an unexpected turn, then traders will always have a Plan B to fall back on. In this way, a properly planned out Forex trading strategy can prepare traders for whatever the markets have in store for them. 

Remember - there’s no Holy Grail trading style that works in every type of market. Traders need to engage with current trends, analyse the markets and constantly improve their skills through practice and experience. 

In this article, we’ll look at three popular Forex trading styles used by millions of traders around the world: Scalping, Day Trading and Swing Trading. Each trading style can be differentiated according to the timeframe that it uses. We’ll also highlight the major pros and cons of each style, to help you choose which strategy is best for you.

Practice different trading styles before depositing money by using a free Demo Account on www.Longhornfx.com! 

Scalping Forex


Scalping Forex may be one of the more difficult trading styles to master, but it definitely keeps traders on their toes. This trading style involves opening and closing many positions throughout a single trading session, with the aim to generate frequent, smaller profits. 

When scalping Forex, traders need to be highly attentive to market movements, pinpointing exactly where they should enter and exit the market. This trading style also requires focus and discipline, as profits are made through quick market movements. 

Forex Day Trading


A step up from scalpers are the day traders. Adopters of this style will hold their positions open for slightly longer than scalpers, and will usually focus on up to 10 positions throughout the day. Nevertheless, all positions will be closed before midnight, thereby eliminating exposure to overnight market movements caused by breaking news events. 

Technical analysis indicators and fundamental analysis indicators are an indispensable tool in day trading, as they allow traders to gain insight into market sentiment and gauge possible future price action.  

Forex Swing Trading


Swing Trading is a longer-term trading style, sitting comfortably between day trading and the ‘buy and hold’ approach. This style requires traders to read price charts and understand the ‘swing point’ patterns they create. Unlike the previous two trading styles mentioned, swing trading involves looking at multi-day charts and keeping positions open overnight, if necessary. 

Essentially, swing traders aim to buy the ‘dips’ and sell the ‘rallies’ that appear on trading charts. Traders who prefer a slow and steady profit may opt for this style, opening fewer positions of higher value. 

Get access to over 160 assets and up to 1:500 leverage with LonghornFX. Create a free account to start trading!

#source

Share: Tweet this or Share on Facebook


Related

How does interest rate affect currency rates? How to make money on interest rate changes?
How does interest rate affect currency rates? How to make money on interest rate changes?

How do you predict the currency exchange rate when interest rates change? Can an ordinary trader make money off it? Octa analysts explain in the article.

Is it Easy to Learn Forex? A Comprehensive Guide to Mastering Forex Trading
Is it Easy to Learn Forex? A Comprehensive Guide to Mastering Forex Trading

Forex trading is a popular and potentially lucrative way to earn both active and passive income. However, it's essential to understand that learning forex is an ongoing process that doesn't depend on whether...

Exploring the Trustworthiness of Forex Trading: What You Need to Know
Exploring the Trustworthiness of Forex Trading: What You Need to Know

Forex trading is indeed a legitimate and trustworthy way to engage in financial markets and potentially reap profits. However, it exists within a complex industry where both rewards and risks can be exceedingly high...

Beginner's Guide to Forex Trading with FXTM
Beginner's Guide to Forex Trading with FXTM

If you're new to the world of forex trading and looking to embark on your trading journey, you've come to the right place. Forex trading can seem complex at first, but with the right guidance...

Common Mistakes Made by Novice Traders and How to Steer Clear of Them
Common Mistakes Made by Novice Traders and How to Steer Clear of Them

Trading in the financial markets is a realm that beckons many, but it is fraught with challenges that often go underestimated by novice traders. A lack of profound understanding of market intricacies...

Demystifying Stock Exchanges: The Heart of Financial Markets
Demystifying Stock Exchanges: The Heart of Financial Markets

Understanding the inner workings of stock exchanges is crucial for traders and investors. These financial powerhouses are more than just platforms for trading...

MultiBank Group information and reviews
MultiBank Group
84%
XM information and reviews
XM
82%
FP Markets information and reviews
FP Markets
81%
FXTM information and reviews
FXTM
80%
AMarkets information and reviews
AMarkets
79%
BlackBull information and reviews
BlackBull
78%

© 2006-2024 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.