So, a person's very first step is to choose a style that is beneficial to his or her business career and personality. When a newcomer starts to trade in the Forex market, he or she can become confused as to trading styles that will suit them best. A beginner should try various trading strategies to see which provides the best results. There are many ways of trading, each having distinct characteristics, discussed here that should be considered before risking your capital.

Day Trading  

In this style of trading  you can open and close a single trade or many, on the same day. This is called short-term trading and most of the activity happens here. You have to be able to move quickly to profit in this field. The first, two or three hours usually provides the best opportunities for profitable day trading, because at this time the market is fast moving. Traders using this style, tend to go with the trend of the market which will provide them with a better opportunity for money-making. There is an old saying that works in many markets, "the trend is your friend".

Quick Scalping

The scalpers usually open and close their trades in a short-term time frame such as 1 to 5 minutes. If the person has a lack of knowledge and preparation, he or she should choose the scalp to secure the capital. Many investors who have no proper plan, and weak risk management skills, prefer this style. However traders using this style tend to make small profits if any, as they have no proper trading system or strategy to follow.

If you want to be a successful trader, you should choose other styles in place of quick scalping. However, remember, if you deal with the listed options, you need to learn advanced risk management techniques as part of your trading education and research. Without strong risk management skills, a scalping strategy may be the way forward but you would be limiting the potential profits, using this basic trading technique.

Swing Trading

This is one of the best trading styles for making larger profits in the Forex and indeed other markets also. Most of the experts prefer the swing style as it allows investors to make substantial profits by holding the position for a long time, assuming they have the direction correct. This is a long-term business strategy. Here, investors can hold a currency or share position for days or weeks. In this position, a person does not need to trade more, but they can increase their earnings by using the latest financial and technical tools to enhance their trading position and maybe put broker orders in place to protect their profits should markets suddenly reverse.

Position Trading

Position trading is usually the trading strategy placed over the longest time frame. Here, the investors can hold currency or shares, for days, weeks, or months, waiting for the optimum time to close it out. In this strategy, investors don't need to monitor the trades they have placed minute by minute, they can easily set stop-loss and take profits instructions, knowing they are protected against moves in either direction. This particular approach is a better option for the person with little time to spare to follow markets. Using modern technology and efficient money management techniques, position and swing trading investors are still able to manage their capital and  trades effectively, with minimum daily input, so these are better strategies to consider.

Different types of traders with differing views and strategies deal in these markets. Some investors prefer day trading and quick scalping. Some choose position and swing approaches. But, you can be successful using any of them. To do this, you have to maintain the money management ratio so that you can use the capital you have available wisely and maintain a healthy account balance. An investor should develop the necessary skills to be able to adjust to various market conditions and execute the strategy appropriately. With experience, research and good capital management, you will have a better idea of the trading style that works for you.