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