How Many Types of Commodity Trading are There?
Types of Commodity Traders: Scalper Traders, Day Traders and Swing Traders
There are different types of Commodity traders depending on the amount of time that they hold their open commodities trades.
These commodity traders also use different chart time frames to place their commodities trades.
The different types of commodity traders are:
- Scalpers
- Day commodity traders
- Swing commodity traders
- Position commodity traders
Scalper Traders
Commodity Trading scalpers are the traders that hold on to their open commodities trades for only a few minutes. With the objective of making small amount of pips profit, 10 to 20 pips.
Commodity Trading scalpers make many trades in one day, trading commodity during the busiest times of the day.
Scalpers are commodity traders that can make quick commodity trading decisions.
Commodity Trading Scalpers use 1 min charts and 5 minutes charts to place their trades. They use 5 min chart to determine the trend, if it going up or down, then use 1 min chart to decide their entry & exit points.
Day Traders
Commodities Day Traders are the traders who hold onto their open trades for few hours but not more than a day. With objective of making quite a number of pips, 30 to 70 pips
Day commodity traders make 1 or 3 trades in one day, trading commodity during the busiest times of the day & they do not hold their open commodities trades overnight.
Day commodity traders use 15 min charts and 1H commodity charts to lace their commodities trades. They use 1H commodity chart to determine the trend, if it going up or down, then use 15 min chart to decide their entry & exit points.
Swing Traders
These are the traders that hold on to their open commodities trades for a few days to a week. With aim of making a large amount of pips profit, 100 to 300 pips
Swing commodity traders make an average of 2 to 5 trades in one week, holding onto their open commodities trades overnight. Commodity Trading swing trading requires commodity traders who are patient.
Swing commodity traders use 1H commodity charts and 4H commodity charts to place their commodities trades. They use 4H commodity charts to determine the trend, if it going up or down, then use 1H chart to decide their entry and exit.
Position commodity traders
These are the traders that hold on to their trades for weeks or months. With main objective of making a big number of pips, 300 to 800 pips.
Position commodity traders make an average of 2 to 5 trades in a year, Position trading requires commodity traders who are patient, experienced & have huge account balances which can withstand huge draw-downs.
Position commodity traders use 1 day and weekly commodity charts to put their trades. They use weekly commodity charts to determine the commodity trend, if it going up or down, then use Daily commodity chart to decide their entry and exit.
What type of commodity trader is the best?
The most popular type of Commodity trader is the commodity day trader & commodity swing trader. When beginning its best to try commodity day trading & with some experience try commodity swing trading. These commodity trading methods are most suitable for beginners.
Scalping commodity trading is also popular among commodities traders.
Position commodity trading is not very popular because this type of trading requires a huge commodity trading account balance and sometime it can result to huge commodity draw downs.
What Are Different Types of Commodity Traders? - Different Types of Commodity Trading - Types of Commodity Trade Styles - How Many Types of Commodity Trading are There?
