Trade Forex Trading

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

Types of Traders

There are various categories of traders. The classification of a gold trader is determined by the duration for which they maintain their trade positions.

The different types of traders also use different timeframes to place their trades.

The different types of traders are:

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

The different kinds of traders are described below, and if you are new, you can decide what kind of trader you want to be based on your own personality and the time frame you like to use.

Scalping XAUUSD

Scalpers keep trades open just minutes. They aim for small gains, like five to ten or twenty pips.

Scalpers are traders who execute numerous XAUUSD transactions within a single day, engaging in XAUUSD trading during the market's peak hours. A scalper can open between 30 to 50 trade positions daily.

Scalpers are traders who can make quick trading decisions.

Scalpers utilize one-minute charts to place their trades. They assess a five-minute XAUUSD chart to identify the market trend and to make decisions regarding their entry and exit points.

Scalper 5 minutes time frame strategy

A scalper on a 1-minute chart wants to buy. They check the 5-minute view. If it shows an uptrend like the examples, they go ahead with the XAUUSD purchase.

Methods of Scalping XAUUSD, Intraday Trading and Swing Trading XAUUSD

Types of Traders - Scalpers - Scalping Gold - Scalper Trader

Day Trading XAUUSD

Day traders maintain their trades for a few hours but not exceeding a full day, aiming to generate a profit of approximately 30 to 70 pips.

Day traders do two to five XAUUSD deals in a day. They trade in peak hours and close before night.

Some traders use the 15-minute chart for their trades but check the 1-hour chart to spot the trend and decide when to enter or exit.

Day Trader 1 Hour timeframe strategy

Say you're a day trader using the 15-minute chart and you want to go long. You check the 1-hour time frame, and if it matches the uptrend shown in the examples below, that's your green light to buy XAUUSD.

Gold Trader Types Explained

Types of Market Traders - Day Traders - Gold Day Trade - Types of Traders

XAU/USD Swing Trading

XAUUSD swing traders usually hold their positions for a few days, maybe up to a week, aiming for big moves - anywhere from 100 to 400 pips.

This trader typically carries out between two and five xauusd trades each week, keeping their positions open overnight. The swing xauusd method calls for patient traders.

This type of trader utilizes 1-hour charts for placing trades. Swing traders analyze 4-hour charts to identify trends and determine whether the market is moving up or down, aiding their entry and exit decisions.

XAUUSD Swing Trader 4 Hour chart time frame strategy

A xauusd swing trader using 1-hour charts wants to sell, so they check the 4-hour chart. If it looks like the examples below and shows the trend is going down, the xauusd swing trader will decide it's okay to sell the xauusd.

Techniques of Scalping Trading, Gold Day Trading and Swing Trading

Types of Traders - Swing Traders - Swing Gold - Swing Traders

Position XAUUSD

Position traders keep gold trades open for weeks or months. Their goal is to gain 300 to 1000 pips.

Position traders make 2 to 5 orders per year. The XAUUSD method needs patience, skill, and large accounts. They handle big drawdowns well.

Traders with a long-term perspective typically utilize daily or weekly charts to place their transactions. They consult the weekly chart to ascertain the overall market direction - up or down - and to determine their entry and exit points.

XAU/USD Position Trader Weekly chart timeframe strategy

A position trader on daily candlestick charts wants to sell short. He checks the weekly frame, like the example below. The weekly trend points down, so the XAUUSD trader decides to sell and go short.

Types of Traders - Gold Styles

Categories of Market Participants - Focus on Position Traders in Gold Markets - Traits of Position Traders

Types of Traders

The most frequented or arguably the best category of trader for XAUUSD is typically the day trader or the scalper, contingent upon each trader's specific approach to XAUUSD, yet these dual methodologies represent the most commonly adopted paths for trading gold. Scalping XAUUSD demands participants capable of swift decision-making, whereas intraday trading suits those preferring their market positions to remain active for extended periods, allowing more deliberation when executing XAUUSD choices. When commencing, it is advisable to experiment with either XAUUSD scalping or XAUUSD day trading. Such techniques are preferred because they prevent leaving orders open for excessively long durations. Concurrently, you avoid carrying trades across trading days, and you can engage only when available to observe market fluctuations. With these methods, keeping orders open is best only as long as the established trend aligns with your direction, and exiting immediately once the trend shows signs of reversal.

The two methods described above are the most often used xauusd approaches when it comes to the issue of which xauusd style is employed by the best or greatest traders. Traders may also use automated trading robots to execute their trading strategies and automate these scalping or intraday trading approaches.

For swing traders, retaining positions open for an excessive duration can erode potential gains: this method also demands considerable expertise, thus short-term xauusd approaches are recommended for the majority of novice traders.

The position in xauusd is not favorable as it necessitates a substantial trading account balance and may sometimes lead to significant drawdowns.

Swing and position trading in XAUUSD can backfire if held too long. Trades might reverse hard. Big pip swings could wipe your account. That's why few use these styles. Scalping and day trading manage funds better.

If you're new to trading, don't leave positions open overnight. It's safer to close out all your trades by the end of the day.

XAU/USD News Traders - Categories of Traders - XAUUSD News Trading - this type of trader executes orders when economic news is released, either predicting the news impact to be positive or negative, or setting pending orders above and below the current price. The XAUUSD News Trading approach carries significant risk due to high volatility, and there may be times of low liquidity. There's a possibility that orders may not be filled or, in the worst case, stop losses may not be executed as intended! For some, the Gold News Trading method can yield considerable profits but demands skill.

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 can find out more about automated trading on the Expert Advisors Article - MQL5 EA(Expert Advisor) Bots Forum.

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