Types of Traders: Scalpers, Day Traders, Swing Traders & Position Trading

Types of Traders

There are different types of traders. The type of a trader one is depends on the amount of time that they hold their trade transactions.

The different types of traders also use different chart time frames to place their trades.

The different types of traders are:

1. Scalpers
2. Day traders
3. Swing traders
4. Position traders

Each type of trader is explained below and as a beginner trader you can decide which type of trader you want to be based on your personality and the chart timeframe 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 the objective of making a small amount of pips in profit, 5 to 10 to 20 pips.

Scalpers are the type of traders that make many xauusd transactions in 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 trades per day.

Scalpers are traders who can make quick decisions.

Scalpers use 1 minute charts to put their orders. They use 5 minutes XAUUSD chart timeframe to determine the trend, if the trend is going up or down and to decide their entry and exit.

Scalper 5 minutes time frame strategy

A Scalper using 1 minute chart timeframe wants to go long, checks 5 min chart, looks like the examples illustrated below, since it highlights 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 on to their trades for a few hours but not more than a day. With the objective to make quite a number of pips in profit: 30 to 70 pips.

The day trader makes 2 or 5 xauusd transactions in one day, participating during the busiest times of the market & they don't hold their trade orders overnight.

These traders use the 15 minutes charts to put their orders. They use 1 hour chart to determine the market trend, if it going up or down and to decide their entry and exit.

Day Trader 1 Hour time frame strategy

A day trader using 15 min chart wants to go long, checks 1 hour chart timeframe, it looks like the examples illustrated below, since it highlights 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

XAUUSD Swing Trading

XAUUSD Swing Traders - This type of trader holds on to 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 in one week, holding onto their trades overnight. Swing xauusd method requires traders who are patient.

This type of trader uses the 1 hour charts to put their orders. Swing traders use the 4 hour chart to determine the trend, if it is going up or down and to decide their entry and exit.

XAUUSD Swing Trader 4 Hour chart timeframe strategy

A xauusd swing trader using 1 hour candlesticks charts wants to go short, checks 4 hour candlesticks chart, it looks like the examples illustrated below, since it highlights 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 on to their xauusd transaction for weeks or months. With the objective of making a big number of pips, 300 to 1000 pips.

Position Traders place an average of 2 to 5 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 determine the trend, if it going up or down and to decide their entry and exit.

XAUUSD Position Trader Weekly chart timeframe strategy

Position trader using the daily candlesticks charts wants to go short, checks weekly chart timeframe, it looks like the example shown below, since weekly chart timeframe shows the trend is heading down, the position xauusd trader will then decide it is okay to sell - Go short.

Types of Traders - Position Traders - Position Gold - Position Traders

Types of Traders

The 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 two methods are the most widely chosen xauusd methods. Scalping xauusd and requires those that can make quick decisions while day trading is for those who want their trades 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 do not leave trades open overnight and you can trade when you have time to watch the market movements. In it is best keep orders open for as long as the trend setup is in your direction and exit immediately once the trend direction starts 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 can also automate these scalping or day trading styles by implementing their strategies using automated trading bots.

For swing traders, leaving trade transactions 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 account balance & sometime it can result to huge draw-downs.

For swing trading & position xauusd methods, leaving a 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 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 gold account.

It is not recommended for the trader who is a beginner to leave orders open overnight, it is best to always close open orders at the end of the day.

XAUUSD News Traders - Types of Traders - XAUUSD News Trading - this news trader places orders during economic news release time, either guessing the news will be positive/negative or placing pending orders above and below the price. XAUUSD News method 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! XAUUSD News Trading method can be very profitable for some traders but requires some skills.

Robot Traders - Types of Traders - Automated Traders - the trading robot trader - automated trader is the type of trader that uses automated programs known as gold trading robots - Expert Advisors EA Robots to trade the online market. This automated trader will setup an Automated Robot on their platform & the automated trading bot will then 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 are new to automated trading and would like to find a trader using automated robots to help you come up with an automated trading bot, then you can find out more about automated trading on the Expert Advisors Article - MQL5 EA Robots Forum.