Success in forex trading is very easy to achieve when a trader finds their own forex trading styles. Actually, forex trading is closely related to the trader's personality, so it is not surprising that traders have different styles of forex trading, starting from how to analyze, choose indicators, to execution in the market.
Unfortunately, many forex traders tend to ignore this important point. Beginners in particular, often go along with other traders' styles so they become dependent and cannot be independent. When you join the best forex broker, you will meet many professional traders with various styles.
In fact, if a trader already has his own forex trading style, he will find it much easier to create trading scenarios, read entry signals, and the most profitable benefit is being able to achieve consistent profit trading.
In the process of looking for forex trading styles according to personality, traders will usually encounter a lot of twists and turns. Many traders give up at this stage, until they finally stop building their own trading character and they go back to 'going along' the style of other traders.
Ideal Trading Frequency and Time Frame to Find the Perfect Forex Trading Styles
The first thing to find out is the ideal time frame to run according to daily activities. There are many types of trading strategies that traders can try, but each trading strategy has its own setup, starting from indicators, time frames, trading duration, to different profit targets. Judging from the time frame used, the forex trading system is broadly categorized into 4 types:
1. Scalping
2. Day Trading
3. Swing Trading
4. Long-Term Trading
To find out the most suitable trading time frame, of course, traders must try the trading strategies above one by one, then please compare them with each other. Keep in mind, at this stage what you are looking for is the ideal time frame, not a lot of profit.
The goal at this stage is to find the most ideal trading duration and frequency and not collide with other activities. The less distraction from other activities the better, allowing traders to focus more on trading.
The Most Mastered Basis of Analysis
In forex trading, almost all traders already know that there are several types of analysis in the forex market, namely fundamental, technical, and market regulations. So, the easiest way to determine the forex trading styles according to each personality is to know the most mastered trading analysis bases.
In fact, every trader must tend to one of the dominant types of analysis used before opening a trading position. Between one analysis and another, of course, have their respective indicators as benchmarks for trading signals. For more details, pay attention to the following explanation:
1. Fundamental analysis is more focused on examining economic data such as the interest rate of a central bank, Gross Domestic Product (GDP), inflation, manufacturing business climate, and others that summarize economic activity in a country. Whether the release of fundamental data is good or disappointing usually affects the currency of the country concerned.
2. Technical analysis pays more attention to the forms or patterns of price movements on the chart to determine the most profitable entry and exit probabilities. Due to its effectiveness in its application, this type of technical analysis is almost always used by forex traders around the world.
3. Market sentiment analysis focuses on the probability of the direction of the forex market which is analyzed from the tendency of the majority of traders to open positions on certain pairs.
The sentiment of market participants can be seen with certain indicators, for example the Market Speculative Sentiment Index (Buy / Sell Ratio) which is sometimes provided by certain brokers such as Didimax forex broker.
Apart from the 3 types of analysis above, traders can use other analyzes before finally establishing a position. The goal is to get a more valid signal confirmation. Those are the tips you can follow to find your perfect forex trading styles.
