HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
XM information and reviews
XM
86%
NordFX information and reviews
NordFX
86%

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


RELATED

Beginner's Guide to Share CFDs Trading

Prospective traders can't run out of trading options due to the avalanche of investment opportunities in the trading market. In addition to trading Forex and cryptocurrency...

Guide to Copy Trading: How to Replicate Trades

Copy trading presents the opportunity to mirror the trades executed by other experienced traders in real-time. The concept is to identify a trader with a proven track record...

What Is Stop Loss and Take Profit?

Stop-Loss is a pending order used by traders to minimize risks. When analyzing the market, traders may misinterpret the asset price movement and incur losses...

Octa broker: leveraging AI to revolutionise trading and investments

AI has already made a profound impact on the financial markets. Its ability to predict trends, execute trades swiftly, and manage risk is transforming investment strategies at its core.

What is stock split and stock split reverse?

Apple, Amazon and Tesla have all split their stocks in the past in order to make their shares more accessible to retail investors. In the following article you will learn what a stock split is...

Top Forex Trading Tips For Beginners

Want to know the best trading tips today to use to your advantage in the Forex market? This article will break down good trading tips you should consider using...

Know Your Heroes: Successful Traders of Modern Era

We bet you've heard many times that a great journey starts with a small step. What if we say that success is just a journey, not a final destination. But where you have to...

Understanding Financial Market News and Trends

There are many ways to trade the financial markets, all of which require a good understanding of financial market news and trends. This requires a combination of knowledge...

Dogecoin vs. Bitcoin: Which one is the Better Investment?

Dogecoin and Bitcoin are two well-known crypto assets. However, some traders may not know how to compare Dogecoin vs. Bitcoin, so knowing some of the significant similarities and differences...

Bullish vs. Bearish: What's the Difference?

Bull vs bear describes investment trends that have the power to impact the global financial markets. You've probably heard investors refer to a market...

How to start trading

Diving into any new industry, especially forex, requires planning. In this article, we’ll break down the process of how to start trading in 7 simple but critical steps...

Trading on Forex - A Primary Source of Income

There are a lot of discussions about trading within the boundlessness of the Internet, both in conventional businesses and state-financed organizations...

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...

What is ECN/STP trading?

It is a broker's business model in which clients` orders are sent directly to one or several liquidity providers to be executed on their end. Liquidity providers include companies...

Understanding the Piercing Candlestick Pattern in Trading: Benefits and Limitations

The vast world of trading is replete with countless patterns and technical indicators, each promising its own set of advantages. Among these, the piercing candlestick pattern stands...

InvestLite: How to trade leverage in 2020

People who are engaged in trading in the financial market grapple with such terms as leverage. However, for many reasons, not all investors fully understand what...

High-Frequency Trading (HFT) - Overview, Advantages, Risks

Everyone who is interested in financial markets, of course, knows about the existence of different trading methods. Some of them are quite popular, while not much is known about others...

Dollar-Cost Averaging: The Strategic Method to Strengthen Your Portfolio

Imagine the routine process of fueling your car. If you consistently refuel your tank every week, you'll average out the cost when gas prices rise and fall throughout the year...

Understanding the Nuances of Limit Orders in Trading

In the intricate and fluctuating world of trading, limit orders emerge as an essential tool for investors and traders aiming to assert control over their transaction prices...

Earnings Season - Meaning, How To Make Its Best Use?

Traditionally, the earning season is a favorite time of year for active traders. This is a time when the potential for making profits increases many times over...

Vantage information and reviews
Vantage
85%
FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%

© 2006-2025 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.