Types of Traders

There are four main types of trading styles in Forex:

1. Fast trader (scalper)

2. Day trader

3. Swing trader

4. Position trader

Scalpers are instant traders. Their positions remain open for a few seconds up to a few minutes at most. Their main objective is to capture very small amounts of pips, as many as possible, during the busiest times of the day.

Day traders usually choose a position at the beginning of the day, taking into consideration several variables that guide their judgment, and then finish the day either in profit or loss. These types of traders do not keep their trades open overnight.

Swing traders are those who want to hold trades for several days up to several weeks at a time. These traders cannot monitor their setups throughout the entire day, so they dedicate a few hours each night to analyzing the market in order to make sound trading decisions.

Position traders are those who open trades that last for several weeks, months, or even years. These traders understand that macroeconomic fundamental factors will be the dominant influences when analyzing markets, and therefore they base their trading decisions on them.