Have you built your
forex trading plan? Don't get me wrong, this trading plan cannot be built on a whim, there needs to be an adjustment first to someone's trading type. Maybe someone's plan doesn't suit you because of different types of traders.
Again we have to say that the forex market is a very busy and busy place. All come to make a profit amid liquidity that is very difficult to predict. Even every trader has his breakdown to build his career.
Talking about a career, you need a plan, a support system when carrying out this activity. Whether it's important or not is up to you later, but it's important to know that this is a critical step to becoming a more successful trader over time.
Traders also rely on these support techniques. But not all support or plans are the same, this must be adjusted to the way someone builds a reliable technique. Everything is adjusted to the caliber and style adopted by a trader in trading.
What are The Types and What are their Forex Trading Plan?
That's right, trading needs adjustment, it all comes back to how a trader can generate himself and find the style that suits him best. In general, there are 5 types of traders and they are grouped by methodology or timeframe of activity.
Know first which type you are, whether a trader who relies on timing and strategy or someone who is more dependent on position. This is important to find out because a trading plan that fits the type of trader will determine his career in the incoming times.
1. Day Traders
The first type of trader is a day trader, which means they spend time at the best forex broker on a daily or short-term basis. Day traders usually take short positions to be able to practice the critical tools needed for profit.
Planning that must be planned by a day trader is to identify daily market trends first. Look in detail at the time when there is a long tail. Change the visual setting to one minute long because that is what day traders commonly use.
2. Swing Traders
Then there are swing traders, usually taking positions between 1 to several days until the trend makes them confident. This forex trading plan that can be used is to use a visual market for a few weeks and focus on the middle period.
3. Position Traders
The next type of trader is position or decision making based on position. They will execute the decision in a few weeks, or even when they are still not sure it can take up to months, meaning medium term.
It can also be said that position traders are the most difficult type to follow because of substantial market generalizations that take a long time. So if you want to become a trader like this, first study the broader market ranges and their carriers.
4. Event-Driven Trader
There are also traders who appear at certain times. For example, in the month of rising prices, this will be used to make a profit. Usually, traders like this must always be up to date on currency market developments as the forex trading plan.
5. Algorithmic Trader
Next, there are traders who rely on computer science for decision-making and execution. This algorithm really needs to understand and outsource the program.
Strategy execution will occur in a very fast time, up to milliseconds.
Forex can indeed be done anywhere, but if you review it again, brokers play an important role to help planning run more smoothly. Do trading activities only at Didimax forex broker if you want better trading results.
Carrying out activities as a type of trader will provide benefits with proper planning. Do not arbitrarily draw up a forex trading plan because your career and the future of the currency market depend on it.