Get To Know Some Of These Types Of Forex Traders
For traders who are still learning forex, it might think that all traders are the same. There are several types of traders, especially when viewed from their style of making buying and selling decisions. Moreover, regarding the stock market volatility index. These types include the types of fundamental traders, technical traders, sentiment traders, speculators, and fickle traders. Here’s a more complete review of these types of traders.
Fundamental Forex Trader Types
This type of trader only uses fundamental analysis of charts and does not use technical analysis at all. They are more focused on following the development of economic news and other related data. They also pay attention to export-import activities between countries, because they understand that it also affects the strengthening and weakening of certain currencies.
Technical Forex Trader Types
It is different from the first type because traders who fall into this group do not pay attention to the analysis of economic data at all. Because they believe that the market price does not move randomly but follows a certain pattern. So they try to analyze this pattern. Many traders who are still learning forex are included in this group because they tend to choose a more practical analysis.
Traders in this group usually place short-term trades, some long-term. They often dare to take the opposite position with economic data-based analysis. However, the weaknesses of traders in this group depend on the quality of their computers and internet connections. When disturbed they tend to be afraid to make decisions.
Types of Forex Sentiment Traders
This type of trader is a combination of fundamental and technical types because they use analysis of economic data as well as chart pattern analysis techniques. Traders who are learning forex are also quite a lot of this type. When they get fundamental analysis that is in line with technical analysis, they become more confident to take the best price.
Maybe this type looks wiser in making decisions, but the drawback, they tend to take a long time to decide, because the analysis is quite a lot. That is precisely what often makes them late to take positions.
Speculator Forex Trader Types
Contrary to the sentiment type, this type of trader is very quick in making decisions. Because they rarely observe fundamental or technical analysis and tend to just follow their feelings. Of course, if you want to be this type of trader you have to be prepared to lose a lot of money because the potential losses are greater. Because this type is not recommended for those who are still learning forex.
Capricious Forex Trader Type
It is also different from this type which has a strong foundation every time they make decisions. Because they have many relations in the field of forex transactions, their analysis is a combined analysis that tends to be better and sharper. However, it sometimes makes them feel confused about making decisions and eventually ends up without any decisions.
Usually, traders who fall into this group are those who have a character who likes to look for a comfort zone. Because they always try to find friends with the same fate as them so that if they gain then they gain together, if they lose, they lose together. Traders who are still learning forex will certainly find it difficult to use this style if they don’t have enough relationships. If forced, it will hurt psychology.