Both professional traders and novices who work on the financial market have to develop the most convenient and profitable for them trading system in order to be able to trade on Forex successfully. Working out the trading system one should select the most appropriate trading regime. There are various types of forex trading regimes but it does not mean that every trader can work with any conditions. Trader needs to choose the style which will save the time and fit the personality and financial capacity.
The common mistake among traders is choosing a trading regime inappropriate for their personality. Many people regardless of their experience do not even think about such factor. One more reason of incorrect choice is lack of money and it probably plays the key role. Often traders have to choose the trading regime according to the minimum requirements for the initial deposit.
Below we are considering different trading regimes.
As a rule this trading style is used by newbies. Most of all, they are attracted by the market dynamics.
There are some specifics of day trading:
- 1.Positions remain opened only within a trading day and must be closed by the end of the day or transferred to the next day with protective measures taken.
- 2.All deals have short-term character and are meant for taking only a small part of profit.
- 3.Great number of deals is accomplished during a trading day.
- 4.It does not require investment of big amount of money.
- 5.Working time on the market consists of M1 charts.
There are pros and cons of intraday trading:
Such regime fits traders with strong nerves, endurance and quick reaction.
As a rule, adherents of this trading style are traders who are disappointed with the intraday trading. Week trading session does not show sharp oscillations which are obvious during day trading. Traders who just turn to the week trading may think that the market is dead.
Specifications of week trading:
Such trading style fits traders, who possess such qualities as thoughtfulness and deliberation as first time any trader needs to monitor positions 24 hours a day, analyzing all changes of the market behavior.
Such trading regime fits patient traders because profit made from the deals which remained opened during several weeks will come to the pocket of a trader only after closing of the positions. Adherents of this style have more free time and suffer lower pressure.
Peculiarities of this regime are:
This type of trading will be convenient for traders who have enough funds to invest as well as patience and motivation.
In case you are able to choose the strategy which fits your financial and emotional capabilities, you will achieve success trading on Forex very soon.
- •It requires small amount of money.
- •Trading can be stopped at any time.
- •Emotional pressure.
- •Much time needed for the rest and recovery.
•Absence of free time during the trading session.
- 1.Position can long from 1 to ten days.
- 2.All deals are targeted on taking a great part of profit from the market movement.
- 3.A trading week may consist of one or two deals.
- 4.Money supply requirements for week trading is much higher than for day trading.
- 5.The working time consists of hours charts.
- •Low pressure on nerves.
- •High yield level.
- •Recovery does not take much time.
- •Trader has free time during the trading session.
- •It requires more funds than intraday trading style.
- •Trader can be outside the market during the trend correction.
- •There is no opportunity to stop trading at any moment.
- •Position must be opened 24 hours a day.
- 1.Trader analyzes day and week charts.
- 2.Position may remain opened during several months.
- 3.It requires much more funds that intraday or week trading styles.
- 4.Trader may be outside the market during the trend correction.
- •Much free time
- •Low emotional pressure.
- •No time needed for rest and recovery.
- •Absence of any actions.
- •No opportunity to stop trading at any moment.
- •Limited number of currency pairs convenient for long-term trading.
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