Types of Forex Traders-Which One Suits You Best

If forex beginners are interested in forex trading, they should first decide what type of forex traders to be and then start trading forex. Forex traders are divided into the following six types according to their distinguished features such as the time frame, trading methods etc.
Forex day traders: forex day traders are the most popular type of forex traders. They manage to make profit from intraday moves and use shorter time frame charts such as 15M, 30M or 1H charts. Forex day traders seek for quick turnover trades; they normally never hold anything after the session close. Forex day traders can choose to trade one or two hours of a day or even a whole day. No matter how much time forex traders spend on forex day trading, they need to be patient and attentive.
Scalper: scalper is a type of forex trader who usually uses shorter time frame charts such as 1M, 5M to trade for very small profit with rapid entries and exits. Forex scalpers make minor profit from every rapid trade in order to accumulate small profit into huge one. Forex traders who trade scalping needs much patience, attention as well as skills to respond to market changes. Most scalpers are stressful due to the screen time and frequent trading.
News trader: news trader is another type of forex trader who makes decisions based on news announcements. Economic reports and other news tend to have a short impact on forex market. Forex traders who trade on news try to predict the coming market trend to get profit. Normally, trading around news is risky because the market is volatile. Moreover, forex traders trade on news need to get reliable news before other competitors and respond quickly in order to capture profits. So news traders should first weigh risk of forex news trading before they predict the profitability.
Swing trader: swing traders are a kind of forex traders who make use of longer time frame charts such as 1H, 4H or daily charts to make profit. The swing trading can last from one day to several weeks because of the longer time frame used by forex traders; forex traders do not need to look as attentively as other forex traders such as day traders or scalpers on the screen in swing trading. Swing trading, scalping and day trading are normally used among retail traders rather than institutional traders because the latter cannot afford frequently entries and exits.
Position trader: position traders are forex traders who hold long position in order to make long term profit. They usually use daily or weekly charts. And trade can last for several months. The short term fluctuation can not affect position traders.
Long term investor: long term investor is not as popular as those types of forex traders I mentioned above. Long term investors usually use the weekly or monthly charts. Most long term forex traders invest a big amount of money and expect to double or triple the profit. However, forex traders should know that the liquidity of fund is low and risk is high in long term investment.

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