Though the market of Forex works in a very simple way and not many traders can make money out of it, the types of traders are very different. In our article, we are going to talk about the different types of traders in Forex. If you fall into any of these categories or not, do not think you are not a trader. This market is large and every day more traders are entering Forex. It is not possible to keep a track of what other traders are doing in real life trading. Millions of traders have millions of styles and it is only natural each of them will trade the market in their own way. We are going to discuss some of the only common ways of types of trader. Even you will find a great level of diversity among the professional Swiss traders. Trading strategies and the systems tend to vary from person to person. No matter which trading style you follow, you must trade with proper money management and strict trading discipline.
The fast action trader: This is the common category type of trader. Traders who love fast results fall into this category. Many people still think Forex market is a very easy way of making money and getting rich. The Forex market does not give money to the traders who have no experience in the market. Most of the time, it is the fast action traders who lose all their money in Forex. They try to win all the trades, become impatient if their trades are taking a long time and close the trade with a loss, and make a new trade. They are often known as the scalpers in Swiss trading community. But when you scalp the market make sure that you have solid trading strategy and trade with low-risk exposure. Most of the scalpers in this industry trade with a big lot and end losing their entire trading account within the first few weeks of their trading.
The turtle trader: This is another type of trader who trades the market in a very long timeframe. We are categorizing them as turtle group because like a turtle, they like to see the end of the market trend. They trade big on the market and keep their positions for days, weeks and even months. They are not like the fast action trader. Most of the time, they make the most profit in the market. But before you consider trading this system, you need to learn to be patient by using a Swiss demo trading account. Most of the time the turtle traders who are often called the long term traders lose their control by waiting for a long period of time. Thus, they execute random trades to make a profit and lose a huge amount of money.
The patient trader: Patience is a virtue in Forex trading. If you are patient, you will make more money than the other traders in the market. Though all traders aid themselves by being patient, when it comes to trading, not many can keep their patience. Patient traders in the market can hold their positions and can lose their money. They do not try to recover their lost money in the market and it is how they make more money. They learn from their mistakes and trade on. Trading is an art and you will always have losing orders no matter how hard you try to avoid it. So make sure that you learn the perfect way to accept managed loss.
Summary: By now you know the major types of traders in the forex market. It totally depends on up to you which system you will follow. But no matter which type of trader you chose to be, make sure that you trade the market with solid discipline or else you will not make any money in this industry.