Never miss a story from Warren Venketas

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Warren Venketas

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

Types of Trading Styles – Main Talking Points:

  • Trading Styles for Highly-Organized Individuals Short on Time
  • Trading Styles for Cautious Individuals with Time to Research
  • Trading Styles for Decisive Individuals who Prefer Instant Results
  • Being Consistent with Your Trading Style
  • Finding Your Trading Personality and Style: A Summary
  • Become a Better Trader with Our Trading Tips
woman checking forex charts on mobile phone

Trading style often correlates with the personality of the trader. It is important to reflect internally on personality and lifestyle before choosing a trading strategy and creating a trading plan. This is because using a trading style contrary to your personality will lead to difficulties down the road in sticking to your trading plan.When a trader finds the trading style that suits them best; the style generally endures long term. A trader who isn’t comfortable with a trading style or has not found a home in a specific trading style is the one who most often makes the most common trading mistakes.

Trading Styles for Highly-Organized Individuals Short on Time

Strategies to consider:

  • Swing Trading- Swing trades are considered medium-term as positions are generally held anywhere between a few hours to a few days. The time investment is minimal which is suitable for traders short on time. Orders to open and close may be used which will automatically trigger once certain price levels are reached.
  • Automated Trading - Another approach for traders short on time, or trading in their spare time, is automated trading. Traders merely set their entry and exit criteria along with the size of the trade and allow the market to do the rest.

Trading Styles for Cautious Individuals with Time to Research

Strategies to consider:

  • Position TradingThis is suitable for traders looking to hold positions for a prolonged period (months/years), often basing decisions on long-term fundamental factors. Large capital is required to withstand any potential volatility during the lifetime of the trade in order to avoid a margin call. Cautious individuals will also tend to trade smaller sizes, make use of stops, and avoid highly volatile markets.

Trading Styles for Decisive Individuals who Prefer Instant Results

Strategies to consider:

  • Scalp Trading - A scalp trader looks to open and close a trade within minutes, often takingadvantage of small price movements usually with high leverage. Profits and losses are realized swiftly due to the fast-moving nature of this trading strategy. Decisive traders that seek instant results often trade the news by formulating an opinion of how the market is likely to react and plan accordingly.

Being Consistent with Your Trading Style

Consistency in trading style will lead to consistency in results. Altering styles when trades are not favourable is a common mistake with novice traders. Judgement should not be handed after limited trades, because not every trade is successful. If the trading strategy is sound with proper risk management, sticking to it should provide the desired results.

Finding Your Trading Personality and Style: A Summary

Traders of different personalities and lifestyles can all participate in the forex market. Whether a trader is comfortable with a hands-on longer-term swing or position trading approach, or shorter-term day trading or scalping approach or even a hands-off automated trading approach; trading has something for everyone!

Become a Better Trader with Our Trading Tips

  • Knowing how to control emotions while trading can prove to be the difference between success and failure. explore the importance of emotions in trading.
  • It is important to have trading goals to work towards. Learn more about how to set these goals in our Becoming a Better Trader webinar series.
  • Our research team analyzed over 30 million live trades to uncover the Traits of Successful Traders. Incorporate these traits into your strategy to give yourself an edge in the markets.