Actually, it is a wrong question there are no types of traders but every trade is different from one another. They have the unique ways to trade the market. Anyways, trading personality is what matters when deciding what type of trader you are. It is not about whether you want to be professional or not. Today, we are about to discuss the major types of traders in the Forex market, even though we said there is no such category but when we analyze it further we can categorize the Forex traders as reversal traders and breakout traders. To be honest, every trader will adopt some particular strategy or a trading style in his or her trading life. So let us check out about the major traders.
Are you a reversal trader
The reversal traders are a different kind of traders because they buy when other traders sell when other traders sell they buy when the other traders quit they enter the trades. We will explain you the real definition of the reversal trader. The reversal traders analyze the market and try to understand where the price is about to reverse and trade depending on it. A reversal trader usually trades against the trend but not always. But he or she will not always trade against the trend; it is only half of the truth. The price action and the other indicators are used by the reversal traders to trade. The false assumption is that many think that the reversal traders trade against the trend but the truth is it is not the case we will explain it for you.
Trade against the trend- the trade against the trend works for the reversal traders because they buy on support level and sell on resistance level.
Trade with the trend- the fact is the reversal trader can trade with the trend too, if you are a swing trader then obviously you are a reversal trader. The swing trader tries to enter the Forex market depending on the price level and it happens when the trader thinks that price is going to reverse.
Are you a breakout trader
The breakout traders are also another type who follows the trend to trade the Forex market. They actually love trading the breakout. They prefer trading the exiting or the main trend. The breakout traders are opposite of reversal traders. When the breakout trader is buying the reversal trader will be selling. The breakout traders will be watching for the price to spot whether it breaks from the support or resistance levels.
Summary: Now you might be thinking ‘what type of trader am I?’ we hope that our article supports you in deciding the category you fall into. As traders, you should know to have certain unique strategies and techniques so then you will be able to trade the market in an attractive manner. Having the own strategies and techniques will make you a professional trader too. Before you think about becoming a professional trader you should understand the market. You should be aware of the category you are in since it is very for long term success.