hr: Currency

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The Discretionary trading method is best suited for traders who have psychic abilities! Well, if you want to go engage in this kind of forex trading you will have to rely and trust your intuition to help you make up your mind whether or not to enter or exit a market. Whereas other trading styles put their emphasis on interpreting signals from formulas, patterns, and of course the news, discretionary traders use subjective experiences. These type of traders are the exact opposite of the mechanical traders.

This is basically a gut-feeling way of trading. Yes, they do rely on “feelings” whether to buy or sell. Many of these traders have made huge profits by swiftly jumping on profitable positions. But the disadvantage to this trading method is obvious: there is just no certainty. Without any formal system to back it up, you really can’t trace how you succeeded in the trade and there is no way to repeat the process, since the decision was just based on gut feeling.

But, statistics have shown that many discretionary traders have indeed become very successful traders. Should you discover that this kind of trading is for you, then you will have the advantage of flexibility and the ability to jump in and stop a trade that you feel will decline, or you can accordingly change your bid to maximize your profit if it feels to you that the trade value will increase.

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