Every trader has a unique character which also is reflected in trading a and they choose a trading style apt for them.

There are four main styles of trading, namely scalping, day trading, swing trading, and position trading. The difference between the styles is based on the length of time that trades are held for.

1. DAY TRADING

Day trading is specifically buying and selling instruments within the same trading day, such that all positions are closed before the market closes for the trading day.

2. SCALPING TRADING

Scalping trading is a more extreme form of day trading. Scalp traders target intraday price movements and aim to make very small, very frequent profits. They typically only hold positions for a few seconds or minutes and exploit small opportunities.

3. SWING TRADING

Swing trading is a style of trading that attempts to capture gains in a instrument over a period of a few days to weeks. Swing trading tends to be more passive compared to scalping since the holding times are longer and price ranges are wide.

4. POSITION TRADING

Position trading involves holding a instruments for an extended period of time, typically several weeks at minimum. A position trader generally does not let daily price motion or market news influence their trading style.

FOREX Trading Styles: A SUMMARY

Here we outline 4 types of Forex styles with practical trading examples. Each trading style will appeal to different traders depending on personal attributes. Matching trading personality with the appropriate style will ultimately allow traders to take the first step in the right direction.