Is Forex Trading Profitable

One of the exciting and great things about forex trading and that which makes it a truly unique and special experience is that we can make profits from both price falls and price rices. I.e lets suppose we buy a EURUSD forex cross, and then once the price of the pair rices (EUR going up against USD), we make the  profit. If we sell the same currency cross we clear profits once the EUR loses to the USD.

These cycles is the natural movement of any currency pair. How we decide to acton these cycles shows what type of forex trader you are!

Here we will look at three different types of forex traders:

Short Term (Scalper)

Scalpers go for many small trades as a way to make profit, often at the range of 3-10 pips each trade. They will usually base their decisions on charts with 1-5 minute candlesticks and will do several trades a day. Scalpers deal with currencies with low spreads such as the major pairs.

Mid Term (Day Trader)

A daytrader is a forex trader who holds positions of medium term. They will usually hold a trade between 15 minutes to one day, as in daytrading. They will normally use for example two charts with 5 minutes and 15 minutes japanese candlesticks. Their average pip goal could be something like 10-50 pips.

Long Term (Position Trader)

Position traders trades on the long term and uses on 1-4 hours candlesticks. They will have high pip profit goals as high as to 400. This strategy requires a large risk tolerance.

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This article was taken from ForexTradingWinners.Com

Article Source: ArticlesBase.com – Position Traders, Day Traders and Scalpers – 3 Strategies To Forex Trading Profit