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 kind of currency trader is described below, and as a beginner you as a forex trader can choose what kind you want to be based on what you are like and the chart time you would like to trade forex with.

Scalpers - Scalping Forex Trading

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

Scalpers deploy a high volume of trading operations within a single day, participating in Forex primarily during the market's most active hours. A scalper might execute between 30 and 50 transactions daily.

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

Scalper Traders use 1 min charts to put their 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 on the 1-minute chart eyes a long trade. They check the 5-minute view, like the example shown. With an uptrend in sight, they go ahead and buy the 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 kind of trader keeps their trades for a few hours, but not longer than a day, trying to make a good amount of pips, like 30 to 70 pips.

Forex day traders do two to five deals per day. They trade peak hours and close before night.

These traders use 15-minute charts for orders. They check 1H charts for trends, up or down, to pick entry and exit.

Day Trader 1 Hour time frame forex trading strategy

A day trader using the 15-minute chart timeframe might decide to execute a long trade after checking the 1-hour chart timeframe. If the higher timeframe confirms an upward market trend, as depicted in the example below, it validates a buy decision for 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 trader type makes 2 to 5 trades per week. They hold trades overnight. Swing forex needs patient traders.

This type of trader uses the 1 Hour chart to put their orders. Swing traders use the H4 chart to determine the trend, if it's going upward or downward and to decide their entry and exit.

Forex Swing Trader 4H chart time frame forex trading strategy

A swing trader analyzing 1-hour candle charts may choose to initiate a short position. Upon reviewing the 4-hour candle chart - which confirms a downward forex trend - the trader decides it's appropriate to proceed with a sell or short trade for 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 daily or weekly charts for orders. They check weekly charts for trends, up or down, to set entry and exit points.

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 is okay button 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

The most frequently adopted trading classifications, either day trading or scalping, depend on the individual trader's preferred forex approach, but these two methods dominate forex participation. Forex scalping demands rapid decision-making capabilities, whereas intraday trading caters to those comfortable with trades running for longer, allowing more deliberation time. When commencing, it is advisable to experiment with either scalping or day trading. These forex styles are generally superior as they minimize the duration trades remain open. Moreover, you avoid holding forex positions overnight and can trade during times you are available to monitor market movements. In Forex trading, the best practice is to keep orders open only as long as the established forex trend aligns with your position, exiting instantly once the trend direction begins to reverse.

In questions about which Forex style top traders use, the two methods above are the most common Forex trading ways. Traders can also set up these scalping or day trading styles with automated robots that follow their Forex strategies.

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.

In forex swing and position trading, open trades can last too long. They might turn against you with big pip losses and clear out your account. That's why these styles lack popularity. Scalping and day trading help control your forex account funds better.

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

Forex News Traders - Trader Categories - News Trading - This type of forex trader executes orders coinciding with economic news releases, either anticipating the news outcome (positive/negative) or placing pending orders just above and below the prevailing forex price. The news trading method carries inherent risk due to extreme volatility during these releases, often coupled with a temporary lack of liquidity. Your orders might not be filled, you could experience requotes when opening trades, or your stop loss might not be executed! While not suitable for everyone, the News Trading methodology can serve certain FX traders proficient in its execution.

robot traders - automated buyers - the robotic trader - computerized trader is the type of dealer who makes use of automated buying and selling applications known as Robots - EA Robots EAs Robots to change the online foreign exchange currency marketplace. This dealer will install an automated trading robotic on their foreign exchange trading platform & the automatic robotic then will open and near foreign exchange trades on behalf of the trader based totally on the automatic robotic approach which has been used to program this automated robotic. in case you're new to computerized buying and selling & would like to find a forex trader the usage of computerized bots that will help you as a dealer create an automatic trade robotic, then you definitely as a forex dealer can find out more approximately automatic buying and selling at the expert Advisors Article - MQL5 EA(expert consultant) Bots discussion board.

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