Choosing Your Trading Style

Finding the right trading style

We’re frequently asked, “What’s the best way to trade the forex market?” Unfortunately, there is no easy answer. Better put, there is no standard answer — one that applies to everyone. The forex market’s trading characteristics have something to offer every trading style (long-term, medium-term, or shortterm) and approach (technical, fundamental, or a blend). So in terms of deciding what style or approach is best suited to currencies, the starting point is not the forex market itself, but your own individual circumstances and way of thinking.

Things to consider
As with many of life’s endeavors, when it comes to financial-market trading, there are two main resources that people never seem to have enough of: time and money. Deciding how much of each you can devote to currency trading helps to establish how you pursue your trading goals.

If you’re a full-time trader, you have lots of time to devote to market analysis and actually trading the market. But because currencies trade around the clock, you still have to be mindful
of which session you’re trading, and of the daily peaks and troughs of activity and liquidity. Just because the market is always open doesn’t mean it’s necessarily always a good time to trade.

If you have a full-time job, your boss may not appreciate your taking time to catch up on the charts or economic data reports while you’re at work. That means you’ll have to useyour free time to do your market research. Be realistic whenyou think about how much time you’ll be able to devote on a regular basis, keeping in mind family obligations and other personal circumstances.