When you are new to Forex trading, you can feel overwhelmed by all the strategies available. It can be difficult to select or to develop a trading strategy that meets your needs and lifestyle. In this article I will give you an overview of the patterns of the three main trading partners. Each style will point out the advantages and disadvantages.
Trading pattern # 1: Swing Trade
Swing Trading means that you trade on the basis of the long term. You enter the position will be open for several days or even weeks. The advantage of this type of trading is that you have little to no work. It involves more or less the following steps:
• Check the conditions of preparation of the trading strategy of your choice.
• You can enter the trade at the moment the criteria are met.
• You can control this trade on a regular basis. Interval is defined in your trading strategy is linked to the time frame for planning.
• Example:
• If you use a chart 1D, and will check your positions are open every day, ideally at the moment of the closing time of a candle stick.
• close the position when the final conditions are met. The position is automatically closed when it reaches the stop your loss.
It is clear that there are a lot of tools that help you to perform some tasks automatically.
The main drawback is that your positions involve more risk where they can reverse this trend, while you sleep, for example.
Trading pattern # 2: trading during the day
The objective of the trading during the day is to open and close of trading on the same day. Profit in the trade with less than a swing trade, but there is less exposure to risk. Great advantage is that there is a fair balance between risks and profits. This pattern of trade in many cases, a profit results as good as 50-80 points. Furthermore, risk is reduced as you close the position on the same day. As a result, your trades will be less affected by the shift directions. The main drawback is that you have to monitor your trading often, at least twice or three times a day. This depends on your trading strategy.
# 3 pattern of trading: scalping
Abrasion is a short-term trading style. Special close positions usually within an hour or even minutes. Great advantage is that these business methods offer many entry points in one day. When working with abrasion, you can sit in front of the screen all the time, because you have to respond quickly to changing market conditions. When you accumulate all trades successfully implemented, will generate a nice income.
On the other hand, scalping is not for everyone, because you have to be able to move quickly, but taking into account the calm and discipline. In my previous article, and gave some tips and advice to train yourself to get the mind focused and calm.
Trading is like driving a car. When you know how to do it is, it's child's play. It is natural for a set of procedures. But, when you have not learned how to drive properly, it can become dangerous. The same applies to forex trading. This is why I started trading currency forex blog with tools and tips that will help you build a good business tools.
