What Are Different Types of Traders? - How Many Types of Trading Styles are There?
Types of Traders: Scalper Traders, Day Traders and Swing Traders
There are different types of traders depending on the amount of time that they hold their open forex trades.
These traders also use different chart time frames to place their forex trades.
The different types of traders are:
- Scalpers
- Day traders
- Swing traders
- Position Forex traders
Forex Scalpers - Scalper Traders
Scalpers are traders that hold onto their open forex trades for only a few minutes. With objective of making small amounts of pips as profit, 10 to 20 pips.
Scalpers make many trades in one day, trading forex during the busiest times of the day.
Scalpers are traders that can make quick trading decisions.
Forex Scalpers use 1 minute charts and 5 minutes charts to place their trades. They use 5 min chart to determine the forex trend, if it going up or down, then use 1 min chart to decide their entry and exit points.
Day Traders
Forex Day Traders are traders that hold onto their open trades for few hours but not for more than a day. With the main main aim of making quite a number of pips profit, 30 to 70 pips
Day traders make 1 or 3 trades in one day, trading forex during the busiest times of the day and they do not hold their open forex trades overnight.
Day traders use 15 minute charts and 1 hour charts to lace their forex trades. They use 1 hour chart to determine the forex trend, if it going up or down, then use 15 min chart to decide their entry and exit points.
Swing Traders
These are the traders that hold on to their open forex trades for few days to a week. With main objective of making a big amount of pips, 100 to 300 pips
Swing traders make an average of 2 to 5 trades in one week, holding onto their open forex trades overnight. Forex swing trading requires traders who are patient.
Swing traders use 1 hour charts and 4 hour charts to place their forex trades. They use 4 hour charts to determine the trend, if it going up or down, then use 1 hour chart to decide their entry and exit.
Position FX traders
These are the traders who hold on to their trades for weeks or months. With the main aim of making a big number of pips, 300 to 800 pips.
Position traders make an average of 2 to 5 trades in a year, Position trading requires traders who are patient, experienced & have huge account balances that can withstand huge drawdowns.
Position traders use 1 day and weekly charts to put their trades. They use weekly charts to determine the forex trend, if it going up or down, then use 1 day chart to decide their entry and exit.
What type of Forex Trading trader is the best?
The most popular type of trader is the forex day trader and forex swing trader. When starting its best to try forex day trading & with some experience try forex swing trading. These trading methods are most suitable for new traders.
Scalping trading is also popular among traders.
Position trading isn't very popular because this type of trading requires a huge forex account balance and sometime it can result to huge forex draw downs.
What Are Different Types of Traders? - What are the Different Types of Trading - Types of Trade Styles - How Many Types of Trading are There?
