Knowing your trader's personality is very important if you want to maintain a healthy, pleasant, and most importantly profitable lifestyle while working on Forex. People are different and what is good for one can be bad for others. Some trading methods and techniques will work for the certain kind of traders, but they will fail when you try to use them.
The most notable difference between various trading styles is the frequency of trading. Traders that like action and often "want to do something" perform better when they open several positions per day. Those who do not like the chaos of the daily trading and like to think a lot before doing something will enjoy the profit from a scarcer trading. There are four distinct types of trader personalities defined by the trading frequency:
There some other parameters that can be different for various traders, but the main trading style is the basic difference. In general, a trader who is good with position trading should not venture into day trading to remain successful. Try to find out your style as soon as possible and stick to it.
If you want to get news of the most recent updates to our guides or anything else related to Forex trading, you can subscribe to our monthly newsletter.