Forex traders are classified in line with their decision making tools. Broadly they fall into two categories –
Fundamental traders are those who base their trading on fundamental indicators like macro and micro economic information, interest rates, money supply and political stability. They are mainly long term traders and like to hold on to their positions.
Technical traders are those who use tools like charts, levels of support and resistance, trend lines, algorithms models and other such tools. They are mainly short term traders who trade frequently and take various positions in the market.