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

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 trade transactions.

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 currency trader is explained below and as a beginner trader you 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 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 trading transactions in 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 trades per day.

Scalpers are traders that can make quick trade decisions.

Scalpers 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 going up or down and to decide their entry and exit.

Scalper 5 minutes forex time frame forex trading strategy

A Scalper using 1 min chart time frame wants to go long, checks 5 min chart, looks like the example below, since it highlights the forex trend is heading up, the scalper will then decide it's okay to buy the currency pair.

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

Day Traders - Day Trading Forex

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

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

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

Day Trader 1 Hour time frame forex trading strategy

A day trader using 15 min chart wants to go long, checks 1 hour chart time frame, it looks like the example below, since it highlights the forex market trend is heading up, the forex day trader will then decide it's okay to buy the currency pair.

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

Swing Traders - Types of Traders - Swing Trading

Forex Swing Traders - This type of trader holds on to their trades 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 in one week, holding onto their trades overnight. Swing forex method requires forex 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.

Forex Swing Trader 4 Hour chart time frame forex trading strategy

A swing trader using 1 hour candles charts wants to go short, checks 4 hour candlesticks chart, it looks like the example below, since it highlights the forex trend is heading down, the swing trader will then decide it's okay to Sell/Go Short the currency pair.

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

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 making a big amount of pips profit, 300 to 1000 pips.

Position Traders place an average of 2 to 5 orders in a year, position forex 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.

Forex Position Trader Weekly Chart Timeframe Trading Strategy

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

Types of Traders - Position Traders - Position Forex Trading - Position Traders

What is the best Trader Type? - Types of Traders

The 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 two forex methods are the most widely chosen forex methods. Scalping forex requires those that can make quick decisions while forex day trading is for those who want their trades 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 do not leave forex trades open overnight and you 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 and exit immediately once the forex trend direction starts to reverse.

When it comes to 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 commonly 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 transactions 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 and 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 pip 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 forex scalping and day trading so as to better manage the funds in your forex 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 open orders at the end of the 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 and below the forex market price. Forex News trading 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 forex 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 Expert Advisors Robots to trade the online forex currency market. This automated trader will install an Automated Robot on their forex trading platform & the automated robot will then open and close forex trades on behalf of the trader based on the automated robot trading strategy which has been used to program this automated robot. If you are new to automated trading & would like to find a trader using automated robots to help you come up with an automated robot, then you can find out more about automated trading on the Expert Advisors Article - MQL5 EA Robots Forum.