Psychologists define personality as the individual pattern of thoughts, feelings as well as behaviour. The thought that one’s personality is not the same with the other is pretty much applicable in the world of trading, especially Forex. Due to individual differences, a particular trader should see to it that his trading styles are not chosen based on imitation but on the applicability of strategies, platforms and instruments towards her ultimate goal. So do you exactly know who you are and what kind of trader are you? If not, then here are 5 of the different trading personalities which will help you define your trading personality.
1.Trader who is driven by events
Are you into current events? Do you keep yourself updated by reading the newspaper? Then you could be an events driven trader. An event driven trader is a type of forex trader who finds opportunities by looking at updates in the market which are brought by political and economic issues. With his inquisitive, curious and forward looking nature, he has the ability to predict possible market behaviour and generate effective strategies according to his intelligent assumptions.
- Trader who is into positions
In the trading field, a trader may either position his assets using either short or long trades. A position trader is someone who finds benefit on long positions rather than short span market movements. He is definitely someone who is patient enough to wait for his lock-in period to end before finally knowing how much profit he will get. Aside from patience, position traders are also gifted with great analytical skills that are used to analyse daily positions charts.
- Trader who trades via swings
Like the position trader, a swing trader values the analysis of the technical trading aspects rather than the basics of trading. He is someone who combines news updates related to volatility and chart readings in order to come up with a good strategy.
- Market Hour Traders
This is another term for day time traders. Daytime or Market Hour Traders are people who do their transactions during the typical market hours. As their name implies, their strategy is to hold unto their positions during the day alone. Thus, they do not usually get affected by breaking and alarming news.
- Scalping Traders
These are individuals who focus on holding their positions in a very short span of time (usually seconds to minutes) As a scalper, you are someone who loves to keep yourself busy by attending to your trades every now and then. Since, they perform their trades as fast as possible, scalpers need to become keen observers and active workers even during hectic moments.
Your personality defines your own trading style but because of the ever changing situations that may occur as you trade, experts suggest that a trader needs to be as open and flexible as possible in order to adjust to possibilities that can make someone get a better profit.