Types of forex traders

[Ithedicious]

Forex trading is a legit and at the same time a risky way to make money online . You can make money with Forex even while staying at home, every forex traders knows the risk involved in it.

There are two types of traders on the Forex:

consumer traders and speculative traders

Consumer traders deal with long term trade with profit while speculative traders deal with short term like daily basis, let's say 15minutes to 4 hours time frame.

What type of forex trading is the best and profitable,
Consumer traders or speculative traders ?

 

[Bengw]

Both types of traders can be profitable but it depends on your trading strategy and your skills. I personally prefer day trading as I don't have that patience to wait for days, weeks or even months for a trade to materialise. But it all depends on your personality and your goals as a trader.

 

[Jasz]

When it comes to trading, it's not just about the trade itself. The way you go about executing the trade is important like @Bengw said. Let's take a look at the differences between consumer traders and speculative traders.

For consumer traders, they have a very strong and positive outlook on their consumption habits. They're highly confident that they'll be able to pay their credit card bills on time, even if they use their credit cards a lot. In contrast, speculative traders are more uncertain about their financial future and don't think they'll be able to pay off their credit cards.

So which group of people is more likely to make a wise decision when it comes to investing? Personally, i will choose consumer traders! Consumer traders are more likely to invest in stocks because they're confident that they'll be able to pay off the debt before any negative consequences come into play. Speculative traders won't do this because they're too afraid of losing money due to the uncertainty surrounding their finances.

 

[Sotherefore]

It all depends on what a trader is really interested , but personally even if I have to engage in trading, the one I will choose will be a speculative trader because I will always like to trade a short market and not really a long market.

At least you can just make a profit within a short period of time and exit the market for the day and that's all.

Keeping your trade for a very long time such as weeks and months might even lead to emotional stress because the market might turns against you anytime and that can have your account liquidated which is not always the prayer of so many traders.

I believe people that are fun of keeping their trade for a long time also have a professional indication on the type of trade they are entering , so even if they keep it for a long time they are very sure that their account won't be liquidated but instead they are likely to make profit.

To me the most important thing is just knowledge because it is with the help of a professional knowledge that will really help you to understand when to hold it for a long time and when to exit the market immediately.

 

[ddude28]

I find forex way too complicated. Stocks are much easier to predict

 

[quindene]

There are four main types of forex traders depending on features such as trading time frame, trading methods, etc.
1. Day Traders - They are one of the most popular types of forex traders who hold on to their forex trades for a few hours.
2. Scalpers - These types of traders hold on to trades for a few seconds to a few minutes aiming to capture very small amounts of pips. Mostly they trade during the busiest times of the day.
3. Swing Traders - Swing Traders hold positions from several hours to several days and analyze charts of 1 hour to 4 hours time frame. A swing trader makes an average of 3 to 6 trades in a week and aims to make a large number of pips in profit, 100 to 300 pips.
4. Position Traders - These traders may have trades that last for several weeks to several months.

 

[Feeble]

It depends on the goal of the trader. If a trader wants easy and fast returns, then speculative trading is best.

Whereas, if someone wants bigger returns, no matter even if they have to wait then consumer trading fits them well.

Trading is not a one-shoe-that-fits-all approach. Everyone will have different goals and different preferences.

 

[Tahir4]

I find swing traders to be more profitable in the market than scalpers or day traders

 

[Dita Walczak]

Forex is the largest currency trading market with a 4 trillion transactions occurring on daily basis. There are different types of Forex traders, including scalpers, long-time traders, hedgers, and gamblers. The percentage of scalpers is really bulk and those who are scalpers get extra advantages with Eurotrader broker.