Why Forex Traders Need To Be Style Conscious

By Author: Al Stewart
Total Articles: 2
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We all remember the story of the tortoise and the hare in Alsop's Fables. You know, the one where the hare and the tortoise race to the finish line. Except the hare gets bored and falls asleep while the tortoise diligently plods along and wins the race.

This is not a story about which is faster. And this is not a story about which is better. It's obviously a story about Forex trader styles! Bet your mother never explained that, did she?

Unlike trades on the equities markets, like the New York Stock Exchange, Forex trades are executed immediately, day or night, 5 days a week. And there is no waiting for “settlement” before your funds are available for the next opportunity.

What a playground for the hare-brained trader! (A little Forex humor there) You can jump in and out of a position all within a few minutes. Especially if you employ a trading robot. Or maybe I should say ONLY if you employ a trading robot?

Because they are fundamentally different creatures, there is no way a rabbit is going to feel good lugging around a heavy tortoise shell, and there is no way a turtle is going to enjoy ...
... being away from home all day.

And if your trading style is contrary to your fundamental nature, you are going to make major errors and lose your money. You will either feel naked or burdened whenever you place a trade.

Look at yourself first and then pick your trading style BEFORE you pick the trade. If you pick subjectively and wisely you will LOVE trading on the Forex market because it has something for everyone.

Ask yourself, “What kind of driver would people say I am?” Do you change lanes far more than most people? Do you tailgate the guy in front hoping to make him pull over or speed up? Got tickets? Got dents?

Do you hate gardening because it takes too long to produce anything?

Or do you feel uncomfortable making a decision of any kind when you don't have all the facts? Are you naturally interested in world events? Especially economics and interest rate changes? Do you know, right now without looking it up, what the price of oil is?

Do you avoid the microwave oven because things just don't taste as good when zapped?

You see, your lifestyle is going to have a lot of clues to help you decide what the best trading style is for you.

So, are you a tortoise? Then spend your time learning how politics, natural disasters, business trends, taxes, Central Bank policies, etc. affect the currency prices. And follow the longer term charts watching for developing trends to pick your trade.

Or are you a hare? Then get yourself some robot software and spend your time learning how the short term charts ebb and flow with the heartbeat of the world.

The tortoise and the hare both had viable styles. The hare lost only because he didn't tend to business. The tortoise won because he did.