Types of Traders: Scalpers, Day Traders, Swing Traders & Position Trading
Types of Traders
There are various types of traders. The type of a trader one is depends on the amount of time that they hold their trades.
The different types of traders also use different chart timeframes to place their trades.
The various types of traders are:
- Scalpers
- Day traders
- Swing traders
- Position traders
Each type of trader is explained below and as a beginner trader you can decide which type of trader you want to be based on your personality and the chart time frame that you would want to be trading with.
Types of Traders - Scalping Trading
The traders who are scalpers hold on to their trade transactions 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 transactions in one day and participate in gold trading during the busiest market hours of the market. A scalper trader can open anywhere between 30 to 50 trades per day.
Scalpers are traders who can make quick decisions.
Scalpers use 1 min charts to put their orders. They use 5 minutes chart time frame to determine the trend, if the trend is going up or down and to decide their entry and exit.
Scalper 5 minutes xauusd time frame strategy
A Scalper using 1 min chart time frame wants to go long, checks 5 minute chart, looks like the examples illustrated and described below, since it displays the trend is going up, the scalper will then decide it's okay to buy gold.
Types of Traders - Scalpers - Scalping Trading - Scalper Trader
Day Trading XAUUSD
Gold Day Trader - This type of trader holds onto their trade transactions for few hours but not more than a day. With the objective of making quite a number of pips profit, 30 to 70 pips.
The day trader makes 2 or 5 gold transactions in one day, participating during the busiest times of the market and they don't hold their trading orders over-night.
These traders use the 15 min charts to put their orders. They use 1H chart to determine the market trend, if it going upward or downward and to decide their entry and exit.
Day Trader 1 Hour time frame strategy
A Gold day trader using 15 min chart wants to go long, checks 1 hour chart time frame, it looks like the examples illustrated and described below, since it displays the market trend is going up, the day trader will then decide it's okay to buy gold.
Types of Market Traders - Gold Day Traders - Day Trading - Types of Traders
XAUUSD Swing Trading
Gold Swing Traders - This type of trader holds onto their trades for a few days to a week - with the objective of making a large number of pips in profit, 100 to 400 pips.
This type of trader makes an average of 2 to 5 gold transactions in one week, holding onto their trades overnight. Swing gold method requires traders who are patient.
This type of trader uses the 1 hour charts to put their orders. Swing traders use the 4H chart to determine the trend, if it is going up or down and to decide their entry and exit.
XAUUSD Swing Trader 4 Hour chart time frame strategy
A swing trader using 1 hour candle-sticks charts wants to go short, checks 4 hour candlesticks chart, it looks like the examples illustrated and described below, since it displays the trend is going down, the swing gold trader will then decide it's okay to Sell/Go Short gold.
Types of Traders - Swing Traders - Swing Trading - Swing Traders
Position XAUUSD Trading
Position Traders - This type of trader holds onto their trade for weeks or months. With main aim of making a large amount of pips profit, 300 to 1000 pips.
Position Traders place an average of 2 to 5 orders in a year, position gold 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.
XAUUSD Position Trader Weekly chart time frame strategy
Position trader using the daily candle-sticks charts wants to go short, checks weekly chart time frame, it looks like the example shown & described below, since weekly chart time frame shows the trend is going down, the position trader will then decide it is okay to sell - Go short.
Types of Traders - Position Traders - Position Trading - Position Traders
Types of Traders
Most popular type of trader or the best trader type is the day trader & scalper trader depending on the method of trading of each trader, but these two methods are the most widely chosen gold methods. Scalping trading requires those that can make quick decisions while day trading is for those who want their trades to run for longer and have more time when making gold decisions. When starting it is best to try gold trading scalping or gold day trading. This methods are the best because you do not leave orders open for too long. At the same time you do not leave trades open overnight and you can trade when you have time to watch the market movements. In XAUUSD it is best keep orders open for as long as the trend setup is in your direction and exit immediately once the trend direction starts to reverse.
In the question about which type of trading style is used by the best traders or by the top traders the two methods above are the most commonly used gold techniques. Traders can also automate these scalping or day trading styles by implementing their strategies using automated robots.
For swing traders, leaving trade transactions too long can also take up your profit & this method also requires a lot of skills so it is best to stick to the short term gold methods for most beginner traders.
Position trading is not good as it requires a huge account balance & sometime it can result to huge draw-downs.
For gold trading swing trading & position gold methods, leaving a trade transaction open for too long, may mean these trades can reverse and move against you with a lot of pip movements and can even wipe your account, for this reason swing and position gold methods are not very popular. It is best to stick to trading scalping and day trading so as to better manage the funds in your trading account.
It is not recommended for the trader who is a beginner trader to leave orders open overnight, it is best to always close open orders at the end of the day.
XAUUSD News Traders - Types of Traders - News Trading - this news trader places orders during economic news release time, either guessing the news will be positive/negative or placing pending orders above & below market price. News trading technique is risky as volatility is massive, whilst liquidity may be non-existent. You may not get filled or, worse, your stop loss might not be honored! News Trading technique can be very profitable for some traders but requires some skills.
Gold Robot Traders - Types of Traders - Automated Traders - the trading robot trader - automated trader is the type of trader that uses automated programs known as trading robots - EA Robots Expert Advisors Robots to trade the online market. This automated trader will install an Automated Robot on their trading platform and the automated robot will then open & close trades on behalf of the trader based on the strategy that has been used to program this automated robot. If you are new to automated xauusd 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.
