There are different trading styles exist in the trading world. A trader has to find his own trading style based on his own personality. It is not an easy task to find out own trading style. You have to know about yourself before finding which style suits you best.

You can choose a suitable trading style only when your personality well. Without choosing your trading style, you will not be able to find a suitable trading strategy for you. Everyone has a unique identity and unique personality of his/her own. Your personality, choice, likes and dislikes will not be exactly same as others, but you might have similarities with others in some cases. In this is why, some like apple juice while others hate it.

In trading, this is similar. Some traders react fast while some others may react slowly. In a same situation, different traders might have different opinions. For example, when RSI crosses above 70 lines, some traders will take it as a sell signal while others will treat this as a buy signal. Neither buying nor selling is a wrong idea when RSI crosses above 70 lines.

Trading Styles:

Different trading styles are as follows,

Scalping:

If you like excitement and want quick profits then, this trading style will be suitable for you. This is a profitable trading style for those who are impatient, and can think and react faster than many other traders. Scalpers aim to make small profits (1 to 2%) every day. In this way, they gather reasonable profit in few days or a week.

Advantages of scalping:

• Higher accuracy or winning rate.
• Capable to generate faster profits than any other trading styles.

Disadvantages of scalping:

• Require a high level of experience and understanding about forex market.
• Trader should be active and focused for several hours.
• Any mechanical error such as internet interruption, slow execution might lead the investment to a large drawdown. 

Day Trading:

Day traders do not hold any position to the next day. If you are afraid of holding an overnight position and not a scalper then you should try this trading style. In this trading style a trader open and close positions anytime before the end of the trading day.

Advantages of day trading:

• Lower number of trades per day.
• Less trading commissions.
• No overnight position.
• Less trading stress.
• Neither very short term, nor long term. 

Disadvantages of day trading:

• Trader should have sound knowledge and wide understanding about technical analysis.
• Trader needs to monitor the market whole day.

Swing Trading: 

Swing trading is a longer term trading style than day trading. Swing trading is suitable for those who do not have time to trade or monitor the market whole day but can spend some time every day to analyze the market. The holding period in this style may vary from a couple of hours to a couple of days. This trading style requires patience and larger stop loss level.

Advantages:  

• Easy to understand and easy to follow for beginners.
• Profits are larger so lower winning ratio is not a problem.
• Flexible trading style and trader get some time to think before entering into a trade.
• Lower number of trades so lower trading commissions.

Disadvantages:  

• Required larger stop loss.
• Chance of overnight positions.
• Profitability is lower than scalping and day trading.

Position Trading/Long Term Trading:

Position trading or long term trading is suitable to those traders, who have the patience to hold the positions for long term. A position trader might hold a position for a couple weeks to months. Position traders use long term charts such as daily, weekly or monthly charts. Position trading requires patience and calmness. Position traders often focus on fundamentals as long term trends are a reflection of fundamental impacts.

• Very low transaction cost as only few traders per week or month.
• Profits are large enough to cover up many small losses.
• Highly flexible and carries less trading stress.

  Disadvantages:  

• Require a high level of patience.
• Low profitability in the short term.
• Stop losses are larger.

Every trading style has both advantages and disadvantages. A trader should know advantages and disadvantages of these trading styles before choosing one.