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