Since the Forex Market is the largest and busiest financial market in the entire world, you’ll find traders of different personalities, approaches, and styles participating in it. The numerous individuals that play a role in this financial market have also come up with numerous trading devices and strategies to cater to almost every trader’s needs and preference. Some Singaporean traders in particular are more adventurous and want the thrill of knowing whether they have made a win or loss on their trading move by the end of the day. Such traders are active full-time traders and can spend their days just watching the Forex market. We call these traders Forex Day Traders. To cater to different trading styles and preference, there are also different types of Forex Day Trading for such traders.
Trend trading is a type of Forex day trading that uses both a longer and a shorter time frame charts. This type of technical analysis is known as Multi-Frame Analysis. Day traders of this type would initially study the longer time frame chart before moving on to the shorter time frame chart. What they’re looking for in these charts are some market trends. They may use some trade indicators to find these and look for entries in the same direction.
Countertrend trading is initially the same thing as Trend trading except that day traders of this type would do differently once they have identified the market trends in the charts. Upon doing so, they’ll shift their attention on the opposite direction of the identified trend and use a smaller time frame chart once again. What they’re looking for in this chart is a possible reversal in the market trend. This is a risky strategy but promises huge rewards when done right.
Day traders doing a breakout trading are more interested in the support and resistance positions of currency pairs rather than discovering an overall market trend. What they’re looking for in this type of Forex day trading is a possible market breakout. They can usually identify a possible breakout by looking at ranges where there’s a strong hold of support and resistance. Upon identifying these ranges, day traders can set themselves up for a perfect entry position in the expectation of a highly probable market breakout. The risk in this day trading type is the fact that false breakouts do happen in the Forex Market.