Play It Your Way: Understanding
Summary
This chapter is devoted to discovering one's unique profile in trading. It includes a profiling test to help one find out how one's personality can help or hurt one's trading style. There are essentially five types of traders: scalper, day trader, swing trader, position trader, and mechanical trader. The main difference among the categories of traders is the time frames employed while trading. Essentially, the length of time in which a trading position is held increases from a scalper to a day trader, to a swing trader and finally to a position trader. Mechanical traders are oblivious to the passing of time. Their trades are based on a fixed routine, regardless of time frame and regardless of market activity. No one category of traders is better than the other, as each category has its own unique characteristics and advantages. The end goal for all categories of traders is the same: to be consistently profitable when trading the forex market. By the end of this chapter, one discovers which group one belongs to.