There are several types of trading system in the Foreign Exchange markets namely; scalping, intra-day swing trading, fresh day market open trading system, breakout trading system, gap trading, news trading, position trading etc. Each trading system could be applied in various methods depending on the trader’s mindset, emotions and available time created for participating in the Forex market. I always like to ask traders before choosing a trading system.
- Are you a part-time trader?
- Are you a full-time trader?
If your answer is yes to the 1st question above, i always recommend certain trading systems that can work for you easily namely: the fresh day market open trading system (Sydney open session), the London session breakout system and trading few minutes after High impact economic news is been released.
If your answer is yes to the 2nd question above, you can trade all types of trading system since you are available on the computer system at most times. This means you will be looking for entries at all trading sessions ranging from the Sydney-Asian-London-New York trading sessions.
Each trader in each category has its own over-all advantage and disadvantage in the Forex market. A part-time trader will participate less in ranging markets and make less profits when markets are in trending mood except a wide take profit is targeted. This is due to the fact that a part-time trader only trades a session for the whole day, depending on his available time.
On the other hand, a full time trader will participate more in ranging markets; however this could be avoided depending on the trader’s skill. A full-time trader would make more profits than a part-time trader when markets are in trending mode as signals could be identified at each trading sessions.
Overall, whether you are a part-time trader due to the fact that Forex trading is an additional source of income for you or you are a full-time trader due to the fact you earn solely from Forex trading, both types of trader can make consistent income from the Forex market.