Any Forex Trader you meet whether in Kenya or anywhere else in the world for that matter, will fall into one of these 3 categories. Based on your individual resilience and abilities, you can pick whichever trading style that best suits you and make a fulfilling, enjoyable and life altering full time or part-time career out of it.
These are the 3 types of traders that we have in Kenya, Namely, Scalpers, Day traders and Swing traders.
Like rats and mice, scalpers get into and out of positions very quickly. Rarely will they hold a position for a whole hour. They target very small profit margins and they make their money out of quantity of trades as opposed to quality.
Of all the trading types, scalping is the most stressful and the style that requires the most discipline. You can never take your eyes off the trading charts lest you lose out on a 5-10 pip opportunity.
This is the category into which I fall and most probably where you will too if you get your training from me. The unique trait that identifies day traders is that they never leave a position open overnight. They trade throughout the day (hence the name) but come dusk, they close all their positions, take their profits or cut their losses, and start the following day on a clean slate.
Day trading is less stressful compared to Scalping or Swing trading, but unfortunately you will not spot trading opportunities everyday like the scalper. In fact, you might end up trading only 2 or 3 days a week, but expect anything upto 100 pip wins for any good trade.
Finally, we have swing traders who hold a position for days, weeks or even months, patiently waiting to maximise their take home package. A swing trader might predict that the dollar, due to an economic crisis, will drastically fall in price over the next 3 to 4 months. Based on this information, he will sell the dollar and patiently wait for the graph to drop to an unthinkable low before buying and scoring ridiculously high profits.
Note that swing traders are charged rollover interest for every position left open overnight and forex trading horror stories are rife with tales of swing traders who left their positions open at night only to wake up in the morning and find news that broke at midnight completely reversed the trend and plunged them into permanent debt.
So, what type of trader are you or what type of forex trader do you want to be? Share with us in the comment section below.
I wish you happy and prosperous trading.