Currency Trading For Dummies, 3rd Edition

Appendix

Trading Strategies

In This Appendix

Finding out what type of trader you are

Getting actionable trade ideas

Developing a strategy based on your trader type

The forex market is the largest financial market in the world. A market with more than $5 trillion a day in turnover presents plenty of opportunities for the retail trader, but those opportunities won’t be handed to you on a silver platter — you have to work hard to ensure you’re successful in the forex market. In this appendix, we set you up to do exactly that by helping you choose the right trading strategy for you and giving you tips on implementing that strategy.

What’s Your Sign? Determining Your Trader Type

There are thousands of forex strategies, but you need to choose the one that works best for you. At FOREX.com, we’ve grouped traders based on personality types and developed specific strategies for each. We’ve identified three trader types:

• The scalper: A scalper is a trader who looks for short, minimally profitable opportunities in the market that can add up over time. If you’re a scalper, you don’t have the patience to hold a position for a lengthy period and you grow bored easily when keeping trades active ...