One of the exciting and great things about forex trading and that which makes it a genuinely unique experience is that we can make profits from both price rises and price falls. I.e let us say we buy a EURUSD forex cross, and then as the price of the cross rises (EUR going up against USD), we make the equvivalent profit. If we sell the same currency cross we clear profits once the EUR loses to the USD.

These cycles is the natural movement of any currency pair. How you choose to act on these cycles shows what kind of trader you really are!

In this article we will take a look at the three different types of traders:

Short Term (Scalper)

A scalper makes profits by making many small trades, often in the range of 3-10 pips each trade. Usually they willbase their decisions on charts with 1-5 minute candlesticks and will make many trades each day. Scalpers focus on currencies with low spreads such as the big pairs.

Mid Term (Day Trader)

Day traders are a forex trader who holds positions of medium term. They will commonly hold a position between 15 minutes to one day, as in daytrading. They will commonly use for example two charts with 5 minutes and 15 minutes candlesticks. They try to get profits that could be something like 10-50 pips.

Long Term (Position Trader)

Position traders trades for the long term and uses on 1-4 hours candlesticks. They will have high pip profit goals as high as to 400. This strategy needs large risk management.

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