Four Types of Traders
Four Types of Analysis Traders
The four types of methods for technical analysis traders are: scalping, day trading, swing trading & position trading.
Gold traders learn and master one gold style that best suits their schedule.
Scalping Trading
Scalping trading is used by traders who set small profits repeatedly & trade many trades during the day so as to make these small profits many times repeatedly throughout the day.
Gold scalpers set and open trades that lasts from a few seconds to minutes. This scalping strategy tries to make profits from small changes in the price. Traders who use these methods are those traders that find it easier to make profits from small price moves rather than from the large price moves.
Gold Scalpers will make many trades in one day & gold scalpers can open anywhere between 10 -20 trades in a day or even more.
Gold Day Trading
Day Trading is used by traders who open & close trades within the same day. Day traders will close their open trades within the same day and day traders do not hold overnight trade positions - trades are opened only for a few hours & closed within the same day.
A day trader will open trades and close all trades before the market closes.
Gold day traders will also try to catch small to medium profits per trade. These day traders will try to profit from small to medium moves in the price movement. Gold day traders will generally open between 3 to 5 trade transactions in one day.
Gold Day Trading is also sometimes referred to as intraday trading.
Gold Swing Trading
Gold Swing Trading is used by traders who want to capture the short term price trends and profit from these short term price trends.
Gold Swing Traders will open a trade and leave this trade open for several days so as to capture the short term market trend momentum & make profit from the short term market trend momentum.
Scalper traders will determine the direction of the short term market trend & then place trades in the direction of these short term market trend so as make profit from the medium price changes.
Gold swing traders will keep a trade open for a few days & these trades might last from 3 days to 7 days on average.
Gold Swing traders will open a few trades in a week & these swing traders may open anywhere between 3 to 5 trades in one week.
Gold Position Trading
Gold Position Trading is used by traders who want to capture the long term price trends and profit from these long term price trends.
Position traders will keep their trades open for weeks or even months.
Position traders will try to make profit from the large price changes in the price. Position traders will try to determine the long term trend and place trades so as to profit from the momentum of the long term trends.
Gold position traders will keep a trade open for a few weeks to a few months & these trades may last from a few weeks to a few months on average.
Gold position traders will open a few trades in a year & these position traders may open anywhere between 5 to 10 trades in one year.
Differences between Scalping, Day Trading, Swing Trading & Position Trading
The differences between scalpers, day traders, swing traders & position traders are:
Gold scalpers - goal is to profit from short term price fluctuations and not from the medium term trend or long term primary trend
Gold day traders - goal is to profit from short term price fluctuations and not from the long term primary trend
Gold swing traders - goal is to profit from the momentum of a swing trend intermediated trend rather than from the long term primary trend rather or from the short term price fluctuations
Gold position traders - goal is to profit from the long term primary trend rather than from short term price fluctuations
Differences between Scalping, Gold Day Trading, Swing Trading & Position Trading
