Types of Traders and Different Types of Traders

How Different Types of Traders Trade the Market?

Various types of traders use different chart time-frames to trade the market. Various types of traders also use different strategies to execute their methods.

Different trader types use different methods - for example different types of trader will use varying leverage options depending on their trading types - short term traders might use more leverage than the long term traders.

Different traders will also use different forex schedules when trading the online market. Short term traders will use forex schedules which are aimed at timing the market to find & identify intraday trading opportunities while long term traders will use forex schedules which are aimed at following the long term trend.

The four main trader categories are:

Scalper Traders

A Scalper trader will trade the short term intraday market movements.

A Scalper trader will open and close their trades within minutes

Forex Scalper traders will open & close trades many times during the Scalper & they can open 10 to 20 trade transactions in one day.

Forex Scalper traders will use strategies that capture the intraday price short term market moves.

Forex Scalper traders will typically use shorter chart timeframes such as the 1 minute charts.

Forex Scalper Traders will only hold their positions for a few minutes.

Day Traders

A day trader will trade the intraday market movements.

A day trader will close all their open trade positions at the end of the market session close - i.e. At the end of the day the day trader will close all open trades.

Day traders do not leave overnight trades.

Day traders will open and close trades many times during the day and they can open 5 to 10 trade transactions in one day.

Day traders will use strategies that capture the intraday price short term market moves.

Day traders will typically use shorter chart timeframes such as the 15 minutes charts.

Day Traders will only hold their positions for a few hours.

Swing Traders

A Swing trader will trade the medium term market swings movements.

A Swing trader will open & leave their trades open for days or weeks in order to capture the medium term market swings.

Forex Swing traders will open 3 to 5 trades in one week.

Forex Swing traders will use strategies that capture the medium term price moves.

Forex Swing traders will typically use chart timeframes such as the hourly charts or even daily charts.

Forex Swing Traders will only hold their positions for a few days to a few weeks.

Position Traders

A Position trader will trade the long term market positions movements.

A Position trader will open and leave their trades open for weeks or months in order to capture the long term market trends.

Forex Position traders will open 5 to 10 trades in one year.

Forex Position traders will use strategies that capture the long term price moves.

Forex Position traders will typically use chart timeframes such as the weekly charts or even monthly charts.

Forex Position Traders will hold their positions long enough so as to catch the long term trend movement.

Types of Traders and Different Types of Traders