If you’re new to forex trading then one of the most important early decisions you’ll have to make is which trading type is the best fit for your lifestyle and personality. Some forex trading styles rely on split-second decisions and constant monitoring of the market, while others are far less intensive and can more easily fit around your existing professional commitments.

In this article, we’re going to take a closer look at two of the most common forex trading types to see if either of these strategies could be the perfect fit for you.

Which Trader Type Suits Your Personality?

Each trader type has a distinct set of attributes that you may already have. By aligning your competencies and traits with the requirements of different trading strategies, you can give yourself the best possible chance of forex trading success. 

Scalper Trader

Scalper traders, also known as ‘scalpers’, are a unique group of traders who take a very short-term view of the market. They can conduct dozens or even hundreds of transactions with the aim of making a small profit on each trade that will ultimately add up to a substantial gain. 

This trading type requires individuals to monitor the market constantly to identify new opportunities and determine when it’s the right time to get in and out of a position. This can be very time consuming, with traders often glued to their computer screens waiting for the slightest moves in the market.  

The fast-paced nature of this trading strategy means scalpers tend to be high-energy individuals who think clearly under pressure and have the temperament to handle high volumes of trades. They are also confident decision makers who can react to market moves in a matter seconds to maximise their profits and minimise their losses.

Discipline is another important characteristic of the scalper trader. With so many decisions to make, scalpers often apply a rigid system to evaluate price action, with strict entry, exit and risk management parameters to ensure that winning trades outweighs losing trades over time. Get it right and this trading strategy can bring substantial rewards, although its fast-paced nature also makes it particularly risky.  

Event-Driven Trader

Event-driven forex trading is a strategy that attempts to take advantage of periods of volatility following a major economic or geopolitical event. That can include elections, monetary policy announcements, economic statistics and much more. Two examples of such events are the ongoing Brexit negotiations, which are causing turbulence in the markets on a seemingly daily basis, and the recently escalated conflict and tension between the USA and Iran.

An event-driven trader must spend a considerable amount of time staying up to date with global and local events and be able to analyse how those events are likely to impact the financial markets. If you’re someone who enjoys keeping up to date with global news and has an understanding of the economy, this could be the trading type for you.

Event-driven trading is another inherently risky strategy. That’s because traders must draw their own conclusions about the impact an event will have, often going against market consensus. That means event-driven traders must be confident and informed enough to make their own decisions and rely on fundamental analysis rather than technical charts to determine their positions.  

Other Trading Types

These are just two of the most common forex trading types. If you don’t feel like you’re a good fit for the scalper or event-driven strategies, take the DNA FX quiz from DailyFX to find the most appropriate trading type for you. 

Although a forex trading strategy that’s well-suited to your natural attributes can put you on the right path, there is still no guarantee of success. However, when combined with intelligence, gut instinct and comprehensive research, it could help you build consistent account growth. 

Nowadays, just about any product we buy can be equipped with an onboard microprocessor and built-in wireless capability. And this functionality allows those products to transmit data about exactly how they’re being used. Products of this sort, when considered as a collective, form the Internet of Things: a world-spanning network of interconnected devices.

The implications of this trend are considerable for every area of the economy – from high-end manufacturers to end-to-end IT services. But what impact will they have on the way we do business?

More Data

Not so long ago, when a business wanted to obtain information about how a product was being used, they would have to conduct a survey. This approach has several drawbacks. It’s slow, for one thing, and the information gathered is usually several months out of date. Plus, it relies on self-reporting: many of us might be prone to underestimating how much time we spend in front of the television, and overestimating how much effort we put into exercise.

But if we’re watching a modern smart television, or exercising with a FitBit strapped to our wrist, then this usage information can be transmitted, invisibly and automatically, the R&D department of the manufacturer. This is especially useful when it comes to complex machines, like cars, where subtle faults need to be diagnosed and addressed before they have a chance to become major ones.

Reduced Downtime

The internet of things allows for digital models to be created of real-world assets. This model might consist of incomprehensible code, or a 3d model that a human engineer can expand and explore. Using such a model, it might be possible to simulate real-world usage, and discover, with a fair degree of accuracy, when a given component is likely to fail. This information can be used to order in a replacement component ahead of time, and carry out preventative maintenance.

Reduced Waste

Internet of Things doesn’t just benefit assets that are already out in the field. It can also be used to track large inventories to a high degree of accuracy, and help to prevent stray items from getting lost in the supply chain. This is especially advantageous to large companies with huge inventories, as it makes keeping track of every moving part easier, without having to resort to employing more staff. Inventory can be tracked and managed using a largely-automated process, freeing up your workers to concentrate on more complex and rewarding tasks.

Remote Work

Internet of Things allows workers to work from afar to an unprecedented degree. When workers have the flexibility to choose their own hours, they usually end up happier and more productive. This freedom will therefore result in an overall uptick in your business’s ability to deliver results.

If you are planning to operate your own business in the future, then you might consider checking out Money Brighter to learn how to create an llc in 6 simpler steps.

If you’ve decided to turn your hobby or a skill you are good at into a business, there are several things you need to make sure you have on your checklist beforehand. If you are planning to operate your own business in the future, then you might consider checking out  Money Brighter to learn how to start an llc in texas in 6 simpler steps.

In today’s gig economy, more and more professionals are deciding to become self-employed or work in some sort of freelance capacity.

As job security is on the decline, there has been a shift  from traditional permanent employment towards work-from-home roles, contracted positions and project-based work.

In reality, there are different kinds of being your own boss and, although transitional, each of them has its own specifics.

Knowing if you’d like to be a freelancer, a sole business owner or an entrepreneur may turn out to be crucial for your future efforts and success as it will help you plan accordingly for the right kind of growth, saving you loads of time, money and headaches along the way.

Freelancing

Most people who make the choice to work independently start off as freelancers.

The reasons for that may be different – it may be seeking a better work/ life balance, a wish to perfect your craft and focus on this particular skill or service you are good at, or it may happen by accident while you still have a full time job.

Freelancing is a lot different to a full-time job with regular income to cover all your liabilities. There is no set work schedule to adhere to and no team to work with.

Freelancers often work on their own and may sometimes hire other freelancers or short-term contractors for some of their projects. Essentially, though, they are responsible for finding their own clients, setting their prices and managing deadlines.

Freelancers trade their time for money, they create a job for themselves and if they do not work, they do not get paid.

Freelance work is not scalable and sustainable – freelancers have no long-term commitment to any client and need to constantly be looking for projects. They tend to be particularly good at one skill but not experienced in others, which limits their capacity. Another drawback is that the amount of work and the size of their clientbase is limited by time as there are only that many hours in the day!

From freelancing to owning a small business – how to make it happen?

To begin with, if you want to have a small business, you need to build it larger than yourself. You would be focused on branding, sales, systems and processes to put in action so your business runs smoothly without you being directly involved day in and day out. You might want to think about taking out a loan, such as a loan for the self employed; as a way to help finance the additional costs needed to get to this point

This is the stage when you may take on your first few hires – maybe skilled junior staff you can train up gradually on your own terms.

Instead of you completing projects and being hands-on from start to finish, your efforts would be directed in managing your team to effectively do that.

As a small business owner, you need to feel more confident about your work and trade your services at least at market rate. If, when you were a freelancer, you did not invest in a professional website, now is the time to do so.

Small business owners still need to go to networking events themselves to look for clients, but they are able to pick the projects they want to work on and take on more varied tasks that they used to when they were freelancers.

Entrepreneurship – the ultimate goal

OK, so you have started from a busy do-it-all freelancer and grew your company with a small and trustworthy team. It has been a bumpy journey and you’ve probably had a lot of clients that did not want to pay or that were simply too risky to take on board but yet, you got to this point. What’s next?

If you are wondering about your next step, you are already on the track of entrepreneurship as you are now looking at the bigger picture and what you can do beyond your business.

Entrepreneurs think as leaders and are more prone to take higher financial risks.They have the opportunity to expand their potential further and take more varied and interesting projects. Entrepreneurs are in a position where they can afford to turn down a project they feel won’t bring the business high ROI.

Their mission is no longer simply to figure out how to pay the bills every month but  to solve problems and make the world a better place.