Finding out what type of trader you are is important. This is the most important thing other than trading psychology and business planning. At the bottom of this page will be a video which will help you easily understand this post. As a trader, gathering information is a major aspect of our lives.
Gathering information is a key part of our life. How successfully we are at doing this may define how long we last in the Trading society. As you know, there are many ways in which one can gather knowledge and the information needed to flourish in the Trading society.
What Type Of Trader Am I And How do we do this?
This very much depends on the type of person you are. By saying this, trading is an extension in some senses of your everyday life. Trading concerns everyday things so how we act in life, will present itself to us when trading. The type of trader you choose/adopt will greatly be based on you as an individual. Some of the basic life traits and tendencies you have will crossover to the trading world.
Habits play a role in defining our trading style. Your habits may decide how quick or slow you pick up a style. Waking up early opposed to waking up late, working other jobs etc, being patient Vs. undisciplined, how much time etc, these features all play a part in becoming better.
There are generally two fields or type of trader out their:
You may choose to do one more than the other but most have a piece of both pies. You can mix fundamentals and technicals together. Technical traders focus much attention at chart movement (price action etc). Whereas fundamentals look first to economic data, current events etc. A professional trader will have a nice blend of both techniques.
Let us look at some of the common trading strategies traders can use...
Type of Trader - Scalper
Scalpers can make between fifty-one hundred trades in one single day depending on their strategy (sometimes much more). Scalping simply is taking a number of quick trades. Scalp trades are usually over in a matter of a few minutes and unsurprisingly seconds. The pip count per trade would normally be a small amount although after a full days trading, one could acquire a fairly reasonable amount of pips/money.
Scalper mentality: make as many pips in as little time as possible.
Type of Trader - Intraday trader
Another way of describing an intraday trader is simply a day trader. These are traders which do exactly as the name describes, they trade during the day (throughout). Day traders are usually full-time traders as they devote the working hours to trading. To be honest the time can be quite flexible depending on the specific market type and market window.
Intraday mentality: make as many pips as possible through the day.
Type of Trader - Trend Trader
A trend trader looks to find instruments which trend very well and are strict to a trend. When they find a trend they look to enter the market and follow the trend to wherever they see fit. There are obviously several ways a trader can treat a trend when trading it and it would come to certain factors such as time frame and climate.
Trend trader mentality: look for the trend and trade.
Type of Trader - Swing Trader
A swing trader looks for swing moves in the markets. These moves are much larger than scalping and day trading. The way in which they are linked is that they can be started in a day trade and then turned into a swing trade. These swing trades then can run for days, weeks or months. These trades need much patience and time.
Swing trade mentality: make pips from short-term to medium swings over a few days…