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  1. #1
    This article aims to explain some of the different types of traders and styles of trading

    There are many types of traders. Each one with his/her own egy. By picking the appropriate type that suits you best, you could increase your chances of success and achieving your goals. Need some examples? You’ll get them right away!

    If you think you're more like the 50 meters sprinter, then the scalper could be your role model. Going further down the line, a day trader is the type of guy fit for the 200 meters races. And what about position traders? Well, if you like marathons, that's the perfect job for you.

    Interested in finding out more about all these three egories of traders? Grab your beer beverage of choice and keep on reading!

    Scalpers – non-stop action & suspense aficionados (or enthusiasts)

    I particularly like the description I saw on babypips.com about scalpers. Quote: “scalping is like those high action thriller movies that keep you on the edge of your seat. It’s fast-paced, exciting, and mind-rattling all at once”. Think about a Scorsese movie combined with one of Nolan’s masterpieces.

    You know what? That definition is entirely accurate. Scalpers don't keep their positions open for more than several minutes. They only want to get in, grab as many pips as they can as fast as they can, and get out. Rinse and repeat—multiple times during a day.

    What’s so enticing about scalping? Well, it’s a hell lotta more exciting to have these small thrills a hundred times/day than only twice or thrice… for some people. But this trading egy is not for everyone, of course. You have to enjoy fast trading. You must think fast, be a competent multi-tasker, and also a competent chart reader!

    I'll tell you to know: if you're easily stressed or only prefer placing several trades/day, don’t think about scalping. I almost forgot, if you cannot maintain a supremely focused mind on what you’re doing, scalping is not for you. It’s a demanding business being involved 100% in possibly hundreds of trades day in and day out.

    Day traders – trading during the day?

    Day trading is a popular trading egy where you buy and sell during a specific timeframe of a single day's trading to capitalize on small price movements.

    Day trading is suitable for traders that have enough time to analyze, execute, and monitor a trade throughout the day. This particular trading egy falls in the middle between scalping and position trading (we’ll talk about the latter next). Why? Unlike scalping, you typically prefer placing one trade/day or maximum a few trades/day on rare occasions.

    How can you know day trading suits you? There are several more signs. First of all, you don't fancy keeping your positions open overnight. Then, you are a fan of monitoring the market long in advance, looking for opportunities to place your trades in the next days. Finally, you don’t like surprises: you prefer knowing the outcome of your decisions at the end of the day.

    Day traders split into several distinctive egories. They can fall into trend traders group, range traders group, breakout traders group, or news traders army. Don’t worry, we’ll cover all of these in future articles. For now, you must have made a clear idea of whether you fall into the day traders' egory or not.

    Position traders – when patience is indeed a virtue

    Position traders are the long runners, the marathon men of the trading world. They like holding positions for the most extended periods, sometimes even months or years. They love chasing longer-term trends, are extraordinarily patient and masters of the fundamental trading egies.

    Position traders are somehow the most skilled of the bunch, possessing a lot of attributes and knowledge. Additionally, they separate themselves from the rest because of one particular trait: vision. Position traders don’t aim for 100 successful trades worth of 10 pips each. No, they target consistent returns. And they try to anticipate market developments before they happen.

    For the reasons above, position traders are usually willing to invest the most significant amount of money out of the bunch. Since their open positions are scarce, they need to have consistent returns, right?

    Lastly, position traders never forget to have their stop loss and take profit orders in place. Their egies heavily rely on them, in fact. Without protecting their positions, things could quickly go wrong. Their trading accounts might be wiped out in a matter of minutes. All that after setting up and preparing for an opportunity for months. Terrible, don’t you think?

    Did you find this helpful? We have more in store for you! Simply follow our featured articles section!

    Sources: babypips.com, Investopedia.com

    This information prepared by za.capex.com is not an offer or a solicitation for the purpose of purchase or sale of any financial products referred to herein or to enter into any legal relations, nor an advice or a recommendation with respect to such financial products.

    This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation or the particular needs of any recipient.

    You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.

    This information may not be published, circulated, reproduced or distributed in whole or in part to any other person without the Company’s prior written consent. Past performance is not always indiive of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of za.capex.com

  2. #2
    Trading the news is an integral component of today’s financial markets. But do you know why there’s so much hype surrounding it? Time to find out.

    Learning to #trade the news could prove an essential skill for your #investment #strategies, if you develop an appropriate trading system. Before we get into more details, let’s see what the concept of trading the news means.

    Definition

    Trading the news is a common form of fundamental trading, as certain events can cause price fluctuations and momentum swings. Essentially, trading the news refers to making good use of market announcements for opening short or long positions.

    However, analysts recommend carefully picking what kind of news to follow, depending on your preferences and knowledge, as some can be more difficult to approach than others.

    Now comes the question: how many types of news can there be?

    Types of news

    According to investopedia.com, there are two major types of financial news:

    Periodic

    News typically scheduled in advance and that repeats at a given interval. Examples: earnings reports from companies such as #Tesla, #Apple, #Microsoft, economic data reports such as Consumer Price Index, U.S jobs report (#NFP), and others.

    Periodic news comes with several advantages. For instance, you can predict their market outcome more accurately, and they work best as short-term trading options. Additionally, when following up on recurrent events, you can quickly build up a track record of past performances if you use a trading agenda.

    One-time

    These are news that comes unexpectedly. For instance, the economic crisis from 2008-2009, or the terrorist attack from 2001. Note that their impact is much stronger than recurring news due to the intensity and surprise factor involved.

    As for the unexpected developments, there’s a less degree of predictability in them, and thus trading becomes a bit more challenging. Still, if you adapt your trading strategies on these, they have the potential to be remarkable events for your trading portfolio.

    How do traders approach news?

    Recurring news

    For recurring news, such as the examples from above, there are two critical things that market experts recommend keeping in check:

    Using a calendar

    Keeping a calendar will ensure you always know when the events that interest you are scheduled. You can also use a trading agenda to see what worked for you, how individual decisions affected your trades, and what needs improving in your approach.

    Monitoring your daily trades is essential if you aspire to become a disciplined and efficient trader. Recording your every move should be part of your trading plan.

    On the other hand, recording your trading activity helps you figure out potential patterns for your successful trades. Therefore, you could improve your trading strategies by fine-tuning what seems to work very well.

    Adopting a reliable trading system

    Once you figured out what news you want to trade and how you want to do it, you need to settle upon a specific trading strategy. Keep in mind that some strategies might be better for trading market events such as the U.S Jobs Report than for trading the Consumer Price Index (#CPI), for example.

    Take your time to analyze your options before choosing a trading system. It’s critical to define your goals and how you plan to achieve them. No matter whether you like long-term trading or short-term trading, you have multiple possibilities! Just make sure you do not forget about risk management orders!

    To learn more about trading strategies and types of traders, visit our article here!

    One-time news

    As for one-time news, experts advise reacting promptly, but not irrationally. In the case of black swan events, it’s all about momentum: blink, and you'll miss your chance! However, do not ignore your trading plan and your tested strategies. If you don’t feel comfortable venturing into this territory, you might be better staying back.

    The dangers of trading the news – what to avoid.

    Impulsive reactions

    Try and make rational trading decisions, considering your risk tolerance and goals. This strategy could work better for the unexpected events that shake the markets.

    Not keeping your eyes on the big picture.

    Sometimes things can be different than they look. Always try learning all the facts before making a trading decision. If a company slashes its dividends, it can be a cost-saving measure that lifts stock prices, not vice versa. Here at CAPEX.com we always offer you the latest market developments so that you can trade with all information at hand!

    Paying too much attention to the market sentiment

    If you rely too much on market sentiment, you could easily find yourself buying high because everyone else is doing it and selling low when the market buzz fades out. Instead, try and adapt your strategies to what might be going on in the markets!

    Conclusion

    Global economic variables act as catalysts that cause market movements. Financial news events lead to price movements, and they are the ones worth monitoring. Experts advise to learn, effective, and repetitive price action patterns and incorporate them into your strategies for maximum results.

    Sources: investopedia.com, babypips.com, thebalance.com.

    This information prepared by za.capex.com is not an offer or a solicitation for the purpose of purchase or sale of any financial products referred to herein or to enter into any legal relations, nor an advice or a recommendation with respect to such financial products.

    This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation or the particular needs of any recipient.

    You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.

    This information may not be published, circulated, reproduced or distributed in whole or in part to any other person without the Company’s prior written consent. Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of za.capex.com

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