The Trading Styles of the Forex Singapore Market

Posted by admin 10/02/2014 Comments are off 713 views

Forex Singapore Trading Styles

This article looks at the different trading styles that you find on the Forex Singapore market.

There are four different trading styles that you will find when you look at the forex Singapore market.  It is important that you know what these styles are because you need to determine which one suits you.  If you do not know which trading style you should use on the forex Singapore market you are going to be problems finding a trading strategy.

Position Trading on the Forex Singapore Market

The first trading style that you should know about is position trading.  This is a long-term trading style where you are going to hold positions for months to years.  Position traders will use a combination of technical and fundamental analysis when they trade.  The charts that they use will be the weekly and monthly charts which tell them about the overall movement of the market.

This trading style is the one that most closely resembles investing.  The primary difference is that investing with buy and hold strategies will only look at long-term movements.  It is possible for the position trader to use long and short-term trading strategies.

Swing Trading

Swing trading is the medium-term trading style that you should consider.  When you look at swing trading you are going to hold a position for days or weeks.  This trading will make use of the short-term movements on the market.  The analysis that these traders use is generally technical in nature because this allows you to determine the movements on the market that you should trade with.

The timeframe that is used with this trading means that you will not have to constantly watch the trades.  This is why this type of trading is favoured by traders who are unable to monitor their trading all the time.  Swing trading is popular with part-time traders.

Day Trading

The first short-term trading style that you should know about is day trading.  With this trading style you will be entering and exiting the trade within the same day.  These traders will never hold a position overnight.  Technical analysis is the favoured analysis method of the day trader, but there are some day traders who make use of fundamental analysis.

As you are not going to be holding the positions open for very long the price movements that you profit from will not be very large.  Day traders rely on the ability to open multiple trades in a day in order to make a large profit.

Scalping

The last trading style that you should know about is scalping.  This is an extreme short-term trading style where you hold open trades for 5 minutes or less.  The price movements that you are going to target are the smallest movements possible.  This allows you to open many trades during the day in order to make the profit that you need to.

The profits that you make per trade are very small and many scalpers use leverage to increase their profits.  If you are looking at this trading style then you need to be precise in your trading and able to make decisions about the trades very quickly.

 

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