Traders use different time horizons and tools (like technical analysis and/or fundamentals) and have different expectations for their forex trading returns (profits).
Here are few examples of trading strategies:
Day trading: buying and selling within the same day
Swing trading: holding a position over a few days to profit from a price change
Range trading: trading between identified technical resistance and support levels
Scalping: a trading strategy focusing on small price changes for fast profit (some brokers ban this activity)
Carry trade: when you buy a high-interest-rate currency against a low-interest-rate currency
Economic data trading: trading based on the implications of fresh economic data
Is forex trading profitable?
It can be, but it’s certainly not for everyone. The European Securities and Markets Authority (ESMA) requires brokers to emphasize the percentage of traders that lose money trading CFDs (through which a significant part of forex trading is done). Depending on the broker, this figure usually is between 60-90%, with a lot of brokers BrokerChooser has reviewed reporting numbers in the 70-80% range.
As the saying goes, “If you don’t know who you are, the stock market is an expensive place to find out.” The same holds true for currency trading.
At BrokerChooser, we cannot give you trading advice. We recommend using a demo account if you’re about to explore how to start forex trading. Using a demo account can be the best way to learn forex trading.