CHOOSING THE RIGHT TRADING STYLE

Dear Reader,
I'd like to tell you that before you
choose a trading system, you need to answer a very important question
to avoid buying junk.. and that is what kind of trader are you or
would you like to be?

1. Would you like to swing trade - Which means trading on large time
frames with trades lasting from few hrs to few days?

2. Forex Day trading - This is about trading on smaller time frame
like 15 min chart or 30 min chart with each trade lasting for few
minutes to may be 3-4 hrs.

3. Forex Scalping - small quick profits from trades that are only for
few minutes.

Before you decide, you need to take various points into consideration.

1. Risk Appetite per forex trade - First and foremost is, How much
risk are you willing to take? By this what I mean is how much are you
ready to loose per trade if your trade end in loss?

For example, if you can risk only 25-30 pips per loss, then definitely
swing trading is out of question since a swing trade would require a
stop loss of more than 50-55 pips.
In that case perhaps forex day trading and scalping will be more suitable.

2. How many hrs per day can you spend - If you can spend only 1-2 hrs
per trade, then definitely forex swing
trading may be more suitable option. For example, trading on a daily
chart requires only 15-20 min every day
while day trading on other hand will require about 2-3 hrs in minimum
considering you need to watch charts, open trades, adjust stop loss,
close the forex trade etc…All in same day.

But day trading will present you more opportunities in a week than swing trade.

3. Your profit temperament - Do you like profits on a daily basis even
though they are small or are you ready to have profits once or twice a
week but those profits are big profits?

Small profits on daily basis are good if you like motivation to trade,
as they keep you energized. If so, forex scalping and forex day
trading are more appropriate.

However if you like large profits, then yes, swing trade may be more suitable.

These are just some points..there can be more that you may want to consider.

Hence, i guess by now you may have realized that forex trading style
requires some thought and will assist you in selecting a good forex
trading system base on your interest.

But if your problem is that you don,t know the exact time to enter and
exit the market then you can always use A SOLID SOFTWARE {SIGNAL}that will generate sell and buy signal, and when to exit the market for you.