Which Type of Trading Suits Your Personality?

Different types of Forex trading are better suited to different personality traits. When a trader decides to enter the Forex market, the more self-aware they are, the easier it is to choose a trading type. Once a trader is aware of the specific personality traits that match up with each type of trading they can try to guess which type would be best for them personally. This is, of course not at all a scientific process, and there are no guarantees of success based on a good match of trading type to personality.

The strongest reason to make sure to try to match your personality to your trading type is that if your trading type is contrary to your personality you will have a very hard time sticking to your trading plan. If your trading type goes against your nature, you may stand a lesser chance to be successful at that type of trading. When your trading type matches well with your personality, the decisions will be much more comfortable and can seem almost second nature. That will lead to better trading. There is a possibility that this won’t work for you. So, along with matching your personality, also focus on learning everything about trading. The knowledge can take you very far with successful trading, and for that, look for blogs (perhaps, one similar to the European Intercultural Forum) providing you a clear picture of how the trading works, its advantages, and disadvantages as well as gives tips to better yourself in the process.

A person who is analytical by nature, and takes their time to make decisions is much better suited to a slower type of trading than someone who tends to just jump right into things. Scalper type trading should probably be avoided by the type of person who needs time to think about and evaluate his decisions. That type of personality will be a better match with analytical trading.

Analytical personalities work well with position trading. Trades that are meant to take place over weeks or months are a much better choice for people who tend to do extensive research before making a move. Reviewing charts and economic reports takes time and patience and it is important to have that type of patience to be successful at position trading.

On the other hand, if you are a quick mover, do not like to dwell on your decisions and need constant action, short term scalping would be a better type of Forex trading for you. Scalping traders enter in and out of several trades a day. This type of trading can generate a lot of pressure and a lot of adrenaline, which certain people thrive on. If you are one of those people, this might be the perfect type of trading for you.

If you would like to make trading your full-time job, and have all your trades open and close within a day. Day-trading might be the best match for you. You might be an active person who needs to see things happen but not quite as adrenaline seeking as a scalper. Day trading is somewhat of a middle ground between scalping and position trading and would suit someone with a lot of time and a middle of the road personality.

Match your trading style to your personality, and not the other way around. Your personality is much more difficult to alter than your Forex trading plans.