Forex Trading StyleThere are several styles for trading forex that you can consider. You can also think them as forex trading dimensions. These dimension include technical trading, fundamental trading, swing trading, trend trading, day trading, scalping, and trading with derivatives. Technical and fundamental trading have to do with how you process data for your trading decisions, if you use news, economic data, or historical forex prices, for example. You can also use a mixture of the two styles, so that your trading decisions are based on mostly mathematical indicators (or chart patterns) or fundamental news and information on the economies and supply/demand patterns for the currencies, for example. As for swing trading, trend trading, day trading, and scalping, these mostly have to do with time perspective of your trading, whether you trade with short term (intra day), medium term or swing trading (days to weeks), or long terms (weeks to months and years) in mind. Finally, your use of derivatives, such as forex options, is one of the dimensions of trading. If you use them or not will make a difference in your trading results. |