What Are Different Types of Traders? - What are the Different Types of Trading?
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 stock indices trades.
These traders also use different chart time frames to place their stock indices trades.
The different types of indices traders are:
- Scalpers
- Day traders
- Swing traders
- Position Stock Indices traders
Indices Scalpers
Scalpers are traders that hold onto their open stock indices trades for only a few minutes. With the objective of making small amount of pips profit, 10 to 20 pips.
Scalpers make many trades in one day, trading indices during the busiest times of the day.
Scalpers are traders that can make quick trading decisions.
Indices Scalpers use 1 minute charts and 5 minutes charts to place their trades. They use 5 min chart to determine the indices trend, if it going up or down, then use 1 min chart to decide their entry and exit points.
Day Traders
Stock Indices 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 indices during the busiest times of the day & they do not hold their open stock indices trades overnight.
Day traders use 15 min charts and 1 hour charts to lace their stock indices trades. They use 1 hour chart to determine the indices 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 stock indices 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 stock indices trades overnight. Indices swing trading requires traders who are patient.
Swing traders use 1 hour charts and 4 hour charts to place their stock indices 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 Stock Indices 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 and 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 indices trend, if it going up or down, then use 1 day chart to decide their entry and exit.
What type of Indices trader is the best?
The most popular type of trader is the indices day trader and indices swing trader. When starting its best to try indices day trading and with some experience try indices swing trading. These 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 indices trading account balance & sometime it can result to huge indices draw downs.
What Are Different Types of Traders? - Different Types of Trading - Types of Trade Styles - How Many Types of Trading are There
