Chapter 16: Which Type of Binary Options Trader Are You?
Hey, Binary Options Traders, ask yourself this:
Knowing the kind of trader that you are also helps in the developing of your trading plan. So ask yourself which one of the following best suits your trading type:
- A Day trader
Day traders only trade within the trading day with no overnight positions. Selections of trades are normally done at the start of the trading day. Most binary options traders fall under this category.
- A Position Trader
Position Traders are longer term traders with trades spanning over weeks or months. Fundamental analysis plays a more important part here. If you are more comfortable in being a position trader, then binary options trading is not for you as it is fast moving with the trading period spanning several days at the most.
- A Scalper
In contrast to position traders, scalpers’ trades only last seconds or minutes. The main objective is to make as many trades as possible within the trading day. Here, volume rules over pips. This is the ideal category for binary options traders, especially those that trade using 60 second platforms.
- A Swing Trader
Swing traders trades are normally over several days. Their trades are done with prior planning and then left to their own throughout the trading day. These traders normally do not have time to constant monitor their charts which why they adopt such a trading style.
Irrespective of your trading style, it is important that the style suits your lifestyle. Are you trying to make a second income? Perhaps trade over the weekends or is this your career?