Types of Commodity Traders: Scalpers, Day Traders, Swing Traders and Position Trading
Types of Best Commodity Traders
There are different types of Commodity traders. The type of a trader one is depends on the amount of time that they hold their commodity trade transactions.
The different types of commodity traders also use different commodities trading chart time frames to place their commodities trades.
The different types of Commodity traders are:
- Scalpers
- Day traders
- Swing traders
- Position Commodity traders
Each type of Commodity trader is explained below and as a beginner trader you can decide which type of Commodity trader you want to be based on your trading personality and the commodities trading chart time frame that you would want to be trading with.
Scalping Commodity Trading
The Commodity traders who are scalpers hold on to their commodities trades for only a few minutes. With the objective of making a small amount of pips in profit, 5 to 10 to 20 pips.
Scalpers are the type of Commodity traders that make many commodity trading transactions in one day and participate in commodity trading during the busiest market hours of the commodities trading market. A scalper commodity trader can open anywhere between 30 to 50 commodities trades per day.
Scalpers are Commodity traders that can make quick decisions.
Scalpers use 1 min charts to put their commodity orders. They use 5 minutes Commodity Trading chart time frame to determine the commodity trend, if the commodity trend is going up or down and to decide their entry and exit.
Scalper 5 minutes commodity trading time frame commodity trading strategy
A Scalper using 1 min chart time frame wants to go long, checks 5 minute chart, looks like the commodities trading example illustrated and shown below, since it shows the commodity trend is going up, the scalper will then decide it's okay to buy commodity.
Types of Commodity Traders - Scalpers - Scalping Commodity Trading - Scalper Commodity Trader
Day Trading Commodity
Commodity Day Trader - This type of Commodity trader holds on to their commodities trades for a few hours but not more than a day. With the objective of making quite a number of pips profit: 30 to 70 pips.
The commodity day trader makes 2 or 5 commodity trading transactions in one day, participating during the busiest times of the commodities trading market & they do not hold their commodity orders overnight.
These Commodity traders use the 15 min Commodity Trading charts to put their commodity orders. They use 1H commodity chart to determine the commodities market trend, if it going up or down and to decide their entry & exit.
Commodity Day Trader 1 Hour time frame commodity trading strategy
A Commodity Trading day trader using 15 minutes chart wants to go long, checks 1 hour commodities chart timeframe, it looks like the commodities trading example illustrated and shown below, since it shows the commodities trading market commodity trend is going up, the commodity day trader will then decide it's okay to buy commodity.
Types of Commodity Trading Market Traders - Commodity Day Traders - Commodities Day Trading - Types of Commodity Traders
Commodity Swing Trading
Commodity Swing Traders - This type of commodity trader holds on to their Commodity trades for a few days to a week - With the objective of making a large number of pips in profit, 100 to 400 pips.
This type of commodities trader makes an average of 2 to 5 commodity trading transactions in one week, holding onto their trades overnight. Swing commodity trading method requires commodity traders who are patient.
This type of commodity trader uses the 1 hour Commodity Trading charts to put their commodity orders. Swing traders use the 4H commodity chart to determine the Commodity Trading trend, if it is going up or down and to decide their entry and exit.
Commodity Swing Trader 4 Hour chart time frame commodity trading strategy
A commodity swing trader using 1 hour commodity candlesticks charts wants to go short, checks 4 hour commodity candlesticks chart, it looks like the commodities trading example illustrated and shown below, since it shows the commodity trend is going down, the swing commodity trader will then decide it's okay to Sell/Go Short commodity.
Types of Commodity Traders - Swing Traders - Swing Commodity Trading - Swing Traders
Position Commodity Trading
Position Traders - This type of commodity trader holds on to their commodity trade for weeks or months. With aim of making a large amount of pips, 300 to 1000 pips.
Position Traders place an average of 2 to 5 orders in a year, position commodity trading method requires those who are patient, experienced and have huge account balances that can withstand huge draw-downs.
Position commodity traders use 1 day or weekly commodity charts to put their commodity orders. They use weekly commodity chart to determine the trend, if it going up or down and to decide their entry and exit.
Types of Commodity Traders
Position commodity trader using the daily commodity candlesticks charts wants to go short, checks weekly commodities chart timeframe, it looks like the commodities trading example shown below, since weekly commodities trading chart time frame shows the commodity trend is going down, the position commodity trader will then decide it is okay to sell - Go short.
Types of Commodity Traders - Position Traders - Position Commodity Trading - Position Traders
Types of Best Commodities Traders
The most popular type of Commodity trader or the best Commodity trader type is the day trader & scalper commodity trader depending on the method of commodity trading of each trader, but these two commodity trading methods are the most widely chosen commodity trading methods. Scalping commodities trading requires those that can make quick decisions while commodity day trading is for those who want their commodities trades to run for longer and have more time when making commodity trading decisions. When starting it is best to try commodity trading scalping or commodity day trading. This commodity trading methods are the best because you do not leave commodity orders open for too long. At the same time you do not leave commodities trades open overnight and you can trade when you have time to watch the commodities trading market movements. In Commodity Trading it is best keep commodity orders open for as long as the commodity trend setup is in your direction and exit immediately once the commodity trend direction starts to reverse.
When it comes to the question about which type of commodity trading style is used by the best Commodity traders or by the top Commodity traders the two commodity trading methods above are the most commonly used commodity trading methods. Commodity traders can also automate these scalping or day trading styles by implementing their commodity trading strategies using automated commodities bots.
For commodity swing traders, leaving commodity trade transactions too long can also take up your profit & this commodity trading method also requires a lot of skills so it is best to stick to the short term commodity trading methods for most beginner Commodity traders.
Position commodity trading isn't good as it requires a huge account balance and sometime it can result to huge draw-downs.
For commodity trading swing trading and position commodity trading methods, leaving a commodity trade transaction open for too long, may mean these trades can reverse and move against you with a lot of pip movements and can even wipe your commodities trading account, for this reason swing & position commodity trading methods are not very popular. It is best to stick to commodity trading scalping and commodity day trading so as to better manage the funds in your commodities trading account.
It is not recommended for the Commodity trader who is a beginner trader to leave orders open overnight, it's best to always close open commodity orders at the end of the day.
Commodities Trading News Traders - Types of Commodity Traders - Commodities Trading News Trading - this commodity trading news trader places commodity orders during economic news release time, either guessing the news will be positive/negative or placing pending commodity orders above & below commodities trading market commodity price. Commodities Trading News technique is risky as volatility is massive, whilst liquidity might be non-existent. You might not get filled or, worse, your stop loss might not be honored! Commodities Trading News Trading technique can be very profitable for some commodity traders but requires some skills.
Commodity Bot Traders - Types of Commodity Traders - Automated Commodity Traders - the commodities trading robot trader - automated commodity trader is the type of commodity trader that uses automated commodity trading programs known as commodities trading robots - EA Automated Expert Advisors Bots to trade the online commodities market. This automated commodity trader will setup an Automated Commodity Bot on their commodity trading platform & the automated bot will then open and close trades on behalf of the trader based on the strategy that has been used to program this automated commodities bot. If you are new to automated commodities trading & would like to find a trader using automated trading robots to help you come up with an automated bot, then you can find out more about automated trading on the Commodities Expert-Advisors Article - MQL5 Commodity EA Bots Community.
