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

Best Trader Type - Types of Traders - Types of Best Traders

There are different types of traders. The type of a trader one is depends on the amount of time which they hold their open forex trades.

Different Types of Traders also use Different Chart Time Frames to Place Their Trades

The different types of traders are:

Scalper traders
Day traders
Swing traders
Position traders

Each type of currency trader is explained below and as a beginner trader you as a forex trader can decide which type of trader you want to become based on your personality and the forex chart time frame that you would want to be forex trading with.

Scalpers - Scalping Forex Trading

The traders who are scalpers hold on to their trades for only a couple of minutes. With the main objective of earning a small amount of pips in profit, 5 to 10 to 20 pips.

Scalpers are the type of traders that make many trading transactions on one day and participate in Forex during the busiest market hours of the trading market. A scalper trader can open anywhere between 30 to 50 trade transactions per day.

Scalpers are traders who can make quick and fast trade decisions.

Scalper Traders use 1 min charts to put their trade orders. They use 5 minutes chart time frame to determine the forex trend direction, if the forex trend is moving upward or down and to decide their entry and exit.

Scalper 5 minutes forex time frame forex trading strategy

A Scalper using 1 minutes chart time frame wants to open long, checks 5 minute chart, looks like the exemplification laid-out below, since it displays the forex trend is heading up, the scalper then will decide it's okay to buy the currency pair.

Scalper trader multiple time-frame trading strategy - Types of Traders

Types of Traders - Scalper Traders - Scalping Forex Trading - Scalper Trader

Day Traders - Intraday Trading Forex

Day Trader - This type of trader holds on to their trades for few hours but not more than a day. With the main objective to make quite an amount of pips in profit, 30 to 70 pips.

The forex day trader makes 2 or 5 trading transactions on one day, participating during the most busiest times of market & they don't hold their orders overnight.

These traders use the 15 minute charts to put their orders. They use 1H chart to determine the currency market trend, if it going upward or downwards & to decide their entry and exit.

Day Trader 1 Hour time frame forex trading strategy

A day trader using 15 minute chart time frame wants to open long, checks 1H chart time frame, it resembles the illustration displayed below, since it displays the forex market trend is heading up, the forex day trader will then decide it's okay to buy the currency pair.

Day Traders multiple Chart time frame trading strategy

Types of Market Traders - Day Traders - Intraday Trading - Types of Traders

Swing Traders - Types of Traders - Swing Trading

Forex Swing Traders - This type of trader holds on to their trade transactions for few days to a week - with the objective of making a large number of pips in profit, 100 to 400 pips.

This type of market trader makes an average of 2 to 5 trading transactions on one week, holding onto their trades overnight. Swing forex method requires forex traders who are patient.

This type of trader uses the 1 Hour chart to put their orders. Swing traders use the 4 hour chart to determine the trend, if it's going upward or downward and to decide their entry and exit.

Forex Swing Trader 4 Hour chart time frame forex trading strategy

A swing trader using 1 hour candles charts wants to open short, checks 4 hour candles chart, it resembles the illustration displayed below, since it displays the forex trend is heading down, the swing trader will then decide it's okay to Sell/Go Short the currency pair.

Forex Swing Trader multiple Chart time frame strategy - Multiple Time-frame Analysis

Types of Foreign Currency Traders - Swing Traders - Swing Forex Trading

Position Traders - Types of Traders - Position Forex Trading

Position Traders - This type of foreign currency trader holds on to their trade for weeks or months. With main objective of earning a big amount of pips profit, 300 to 1000 pips.

Position Traders place and open an average of 2 to 5 orders in a year, position forex method requires those who are patient, experienced & have huge trading 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 price trend, if it going upward or downward and to decide their entry and exit.

Forex Position Trader Weekly Chart Time Frame Strategy

Position trader using the daily candles charts wants to go short, checks weekly chart time frame, it resembles the illustration displayed below, since weekly chart time frame shows the forex trend is heading down, the position trader will then decide it's okay to sell - Go short.

Position trader multiple Chart time frame strategy - Multiple Time-frame Technical Indicator

Types of Traders - Position Traders - Position Forex Trading

What is the best Trader Type? - Types of Traders

Most popular type of trader or the best trader type is the day trader & scalper trader depending on the method of forex trading of each trader, but these 2 forex methods are the most widely chosen forex methods. Scalping forex requires those that can make quick decisions while intraday trading is for those who want their trade transactions to run for longer and have more time when making decisions. When starting it is best to try scalping or day trading. These forex methods are the best because you do not leave forex orders open for too long. At the same time you don't leave forex trades open overnight & you as a trader can trade when you have time to watch the forex market movements. In Forex trading it is best keep orders open for as long as the forex trend setup is in your direction & exit immediately once the forex trend direction begins to reverse.

In the question about which type of forex style is used by the best traders or by the top traders the two forex methods above are the most often used forex trading techniques. Traders can also automate these scalping or day trading styles by implementing their forex strategies using automated robots.

For forex swing traders, leaving forex trade positions too long can also take up your profit & this forex method also requires a lot of skills so it is best to stick to the short term forex methods for most beginner traders.

Position forex trading is not good as it requires a huge forex account balance & sometime it can result to huge draw-downs.

For forex swing trading & position forex methods, leaving a trade transaction open for too long, may mean these forex trades can reverse and move against you with a lot of pips movements and can even wipe your account, for this reason swing trading & position forex methods are not very popular. It is best to stick to scalping and intraday trading so that to better manage the money in your fx account.

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

Forex News Traders - Types of Traders - News Trading - this forex news trader places forex orders during economic news release time, either guessing the news will be positive/negative or placing pending trade orders above & below the forex market price. Forex News method is risky as volatility is massive during these News Release Times, whilst at the same time liquidity may be non-existent. You trade orders may not get filled, your order to open a trade may get requoted or your stop loss might not be filled! News Trading method can be suitable for some fx traders but requires some skills.

Robot Traders - Automated Traders - the robot trader - automated trader is the type of trader that uses automated trading programs known as Robots - EA Robots EAs Robots to trade the online forex currency market. This automated trader will install an Automated Robot on their forex trading platform & the automated robot then will open and close forex trades on behalf of the trader based on the automated robot strategy which has been used to program this automated robot. If you're new to automated trading & would like to find a forex trader using automated bots to help you as a trader create an automated trade robot, then you as a forex trader can find out more about automated trading on the Expert Advisors Article - MQL5 EA(Expert Advisor) Bots Forum.

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