Just as there are different trading methods, the same way there are different types of traders. These traders are classified on the basis of their trading style ranging from short term traders to long term traders. In this post, we shall be uncovering these 5 trader types characterized by their distinct trading habits in the market. So, here we go -
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The Day Trader
Days traders are frequent traders who trader multiple times in a day. The whole motive is to trade in currencies and make money with small movements in the market. These type of traders may look to place 10 to 20 positions in a single trading session without holding the overnight risk.
These traders are highly optimistic and are desperate to make the most from a volatile market. With strong understanding of the market and refraining from emotional breakdowns, these traders keep chasing the market with high frequency trading for maximum benefits.
The Swing Trader
Swing traders focus themselves on price swings in the market when actually prices are moving in a definite trend. These traders also seek to spot reversal in prices. Unaffected by the breaking news or company earnings, these traders are focused upon price action and trends. With their technical expertise and emotionless attitude, these traders keep paying attention to pure price action which helps them to plan out their next trade.
The Technical Trader
Technical traders make use of historical data to determine future price action. History repeats itself is the sole basis of how these traders tend to think ignoring the breaking news, earnings report of boardroom instability. These type of traders are characterized by methodological and mechanical attitude which utilizes technical indicators for trade moves. Some of the technical indicators these traders utilizeto see current price trend and spot trading opportunities are:
The Fundamental Trader
Unlike other traders, the fundamental trader seeks to analyze the true value of any asset doesn't matter if it is share, currency or metal. Being very methodological, these traders are focused upon any particular asset and the factors that could affect the pricing of that asset thus highlighting potential trading opportunities.
Looking at earnings report, trading updates and evaluating major themes such as interest rates or retail sales, these fundamental traders are able to predict how any particular company is likely to perform going forward.
The Long Term Trader
As the term suggests, The Long Term Trader trades on a long term basis. These type of traders follow buy and hold strategy where an asset is bought for a number of years until it increases in value.
The Long Term Trading strategy could be beneficial for a trader who prefer to put their money into the markets as opposed to sitting in their bank account earning minimal interest.
So to sum up then, we have come to know 5 distinct type of traders in the trading market. So, what type of trader are you? Please free to leave your comments in the comment box below.
Also, feel free to contact us anytime for any type of trading services from our end. You can place your enquiry for the same by filling in your details here in this enquiry form - http://goo.gl/forms/P3m3h5OxxK
Image courtesy of nonicknamephoto at FreeDigitalPhotos.net
The Day Trader
Days traders are frequent traders who trader multiple times in a day. The whole motive is to trade in currencies and make money with small movements in the market. These type of traders may look to place 10 to 20 positions in a single trading session without holding the overnight risk.
These traders are highly optimistic and are desperate to make the most from a volatile market. With strong understanding of the market and refraining from emotional breakdowns, these traders keep chasing the market with high frequency trading for maximum benefits.
The Swing Trader
Swing traders focus themselves on price swings in the market when actually prices are moving in a definite trend. These traders also seek to spot reversal in prices. Unaffected by the breaking news or company earnings, these traders are focused upon price action and trends. With their technical expertise and emotionless attitude, these traders keep paying attention to pure price action which helps them to plan out their next trade.
The Technical Trader
Technical traders make use of historical data to determine future price action. History repeats itself is the sole basis of how these traders tend to think ignoring the breaking news, earnings report of boardroom instability. These type of traders are characterized by methodological and mechanical attitude which utilizes technical indicators for trade moves. Some of the technical indicators these traders utilizeto see current price trend and spot trading opportunities are:
- Simple moving average (MA)
- Relative of strength index (RSI)
- Mometum
The Fundamental Trader
Unlike other traders, the fundamental trader seeks to analyze the true value of any asset doesn't matter if it is share, currency or metal. Being very methodological, these traders are focused upon any particular asset and the factors that could affect the pricing of that asset thus highlighting potential trading opportunities.
Looking at earnings report, trading updates and evaluating major themes such as interest rates or retail sales, these fundamental traders are able to predict how any particular company is likely to perform going forward.
The Long Term Trader
As the term suggests, The Long Term Trader trades on a long term basis. These type of traders follow buy and hold strategy where an asset is bought for a number of years until it increases in value.
The Long Term Trading strategy could be beneficial for a trader who prefer to put their money into the markets as opposed to sitting in their bank account earning minimal interest.
So to sum up then, we have come to know 5 distinct type of traders in the trading market. So, what type of trader are you? Please free to leave your comments in the comment box below.
Also, feel free to contact us anytime for any type of trading services from our end. You can place your enquiry for the same by filling in your details here in this enquiry form - http://goo.gl/forms/P3m3h5OxxK
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