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Different types of traders in Forex

Short term trader is a trader who looks to open and close a trade within minutes, often taking advantage of small price movements with a large amount of leverage. The good aspect of such trades is the quick realization of profits or losses due to the rapid-fire nature of this type of trading.

On the other hand it is required to have large capital and/or risk requirements due to the large amount of leverage needed to profit from such small movements.

Medium- term trader is a trader typically looking to hold positions for one or more days, often taking advantage of opportunistic technical situations. This way of trading has the lowest capital requirements of the three because leverage is necessary only to boost profits.at the same time these trades have  fewer opportunities because these types of trades are more difficult to find and execute.

Long-term trader  is a trader looking to hold positions for months or years, often basing decisions on long-term fundamental factors. The positive side on these kind of trades is the fact that they are  More reliable long-run profits because this depends on reliable fundamental factors.

Now, you will notice that both short-term and long-term traders require a large amount of capital – the first type needs it to generate enough leverage, and the other to cover volatility. Although these two types of traders exist in the marketplace, they are comprised of high-net-worth individuals, asset managers or larger institutional investors. For these reasons, retail traders are most likely to succeed using a medium-term strategy. Tacmarkets is one of the best platforms to conduct medium-term trades because of its long experience with new traders.

After you decide which trading method suits you best the next step towards creating a successful trading accounts is choosing a reliable platform which provides you with the best service out there. When choosing a platform you should take in consideration the type of trader you are and if this platform provides an educational program suitable for it. As a medium-term trader I found Tacmarkets to be the most useful platform for medium-term traders. Its educational program is free and very elaborative which was necessary for I had no background in finance.

Finally yet importantly whatever method of trading you are using, make sure you know what you are trading on. Investigate and consult with your adviser provided to you the platform and only then place your trade.

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