What is a Position Trader?
Position Traders employ a cerebral, almost academic approach to forex trading - often betting on sweeping macroeconomic and geopolitical themes over the long term, with trades held from several weeks to months (and possibly even years). Position Traders usually lean most heavily on fundamental analysis, though practitioners of this type of trading will also often use technical tools to better time trades and manage risk on longer timeframes.
Why did I get this result?
Your answers to the questions portray you as someone who is eager to learn and always wants to be fully-versed in what you do. Your thirst for knowledge is only matched by your appreciation of technical analysis and sound logic in order to make your decisions.
You like to master the theory behind what you do in order to perfect your execution, learning from every decision and always looking for that little extra bit of information that might help you find success.
You might not be able to check your forex trades regularly, but that doesn’t matter to you as your confidence in your strategy means you are looking for much longer-term wins.
Which assets may be compatible with this trading style?
Am I destined to be a Position Trader forever?
As you grow and learn within the world of forex trading, your style and approach to trading will develop as well. The Position Trader style matches your current mindset of heavy analysis and low risk, but in a few years, you might have changed your trading style a little. Take this test again 12 months into your forex trading career and see if you have remained as a Position Trader, or if you’ve become a Scalper, a Swing Trader, an Algorithmic Trader or an Event-Driven Trader.
REMEMBER, these results were based on a short personality test. Forex trading in your suggested style will not guarantee success.
What is my next step?
If you’re just starting out in your career of forex trading, then DailyFX.com and our years of experience can help put you on the right path. Now you know what type of trading style suits you, why not start putting your strategy into practice? Open a demo account with IG, the provider of DailyFX, today.
Join one of our regular webinars to get insights into the world of forex trading and learn how to develop your own trading strategy. These sessions are run by experienced traders who will discuss emerging opportunities and the latest proven strategies for budding Position Traders such as yourself.
You can also download our free e-book, Tips of a Successful Trader, to learn from real forex traders about the common pitfalls and how to avoid them.