Trade Gold Trading

Types of Traders: Scalpers, Day Traders, Swing Traders and Position Trading

Types of Traders

There are different types of traders. The type of a xauusd trader one is depends on amount and period of time that they hold their trade transactions.

The different types of traders also use different chart timeframes to place their trades.

The different types of traders are:

  1. Scalpers
  2. Day traders
  3. Swing traders
  4. Position traders

Each type of trader is illustrated below and as a beginner you can make a decision which type of trader you want to be based on your personality & the chart timeframe that you would want to be trading with.

Types of Traders - Scalping Trading

The traders who are scalpers hold on to their trade positions for only a couple of minutes. With main goal of earning a small amount of pips in trading profit, 5 to 10 or 20 pips.

Scalpers are the type of traders that make many transactions on one day and participate in gold trading during the busiest market hours of the market. A scalper trader can open/execute anywhere between 30 to 50 trades per day.

Scalpers are traders who can make quick trading decisions.

Scalpers use 1 min charts to put their orders. They use 5 Minutes chart timeframe to determine the trend, if the trend is going up/down and to decide their entry & exit.

Scalper 5 minutes xauusd timeframe strategy

A Scalper using 1 Min chart timeframe wants to go long, checks 5 Minute chart, looks like the examples illustrated and shown & described below, since it displays the trend is going up, the scalper will then decide it's okay to buy gold.

Different Types of Traders

Types of Traders - Scalpers - Scalping - Scalper Trader

Day Trading XAUUSD

Gold Day Trader - This type of trader holds onto their trade positions for few hours but not more than a day. With main objective of earning quite an amount of pips profit, 30 to 70 pips.

The day trader makes 2 or 5 gold transactions on 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 Minutes charts to put their trade orders. They use H1 chart to determine the price trend, if it going upwards or downward and to decide their entry & exit.

Day Trader 1 Hour time frame strategy

A Gold day trader using 15 min chart wants to go long, checks 1H timeframe, it looks like the examples displayed and described below, since it displays the price trend is going up, the day trader will then decide it's okay to buy gold.

Techniques of Scalping Trading, Day Trading XAUUSD, Swing & Position Trading Gold

Types of Market Traders - Gold Day Traders - Intraday Trading - Types of Traders

XAU/USD 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 on one week, holding on to their trade transactions overnight. Swing gold method requires traders who are patient.

This type of trader uses 1 Hour charts to put their orders. Swing traders use the 4H chart to determine the trend, if it's going upward or downward and to decide their entry & exit.

XAUUSD Swing Trader 4H chart timeframe strategy

A swing trader using 1 hour candles charts wants to open short, checks 4 hour candlesticks chart, it looks like the examples illustrated and shown & described below, since it displays the trend is going down, the swing gold trader then will decide it's okay to Sell/Go Short gold.

Techniques of Scalping Trading, Day Trading Gold, Swing Trading & Position Gold

Types of Traders - Swing Trading - Swing Traders

Position XAUUSD Trading

Position Traders - This type of trader holds on to their trade for weeks or months. With main aim of making a large amount of pips profit, 300 to 1000 pips.

Position Traders place and open an average of 2 to 5 trade orders a year, position gold method requires those who are patient, experienced and have huge trading 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 upward or downward and to decide their entry & exit.

XAU/USD Position Trader Weekly chart timeframe strategy

Position trader using the daily candlesticks charts wants to go short, checks weekly time frame, it looks like the example shown & described below, since weekly chart timeframe shows the trend is going down, the position trader then will decide it is okay to sell - Go short.

Methods of Scalping Trading, Day Trading XAUUSD, Swing & Position Trading Gold

Types of Traders - Position Traders - Position Trade Methods

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 2 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 intraday trading. This methods are the best because you do not leave orders open for too long. At the same time you don't leave trade transactions 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 set-up is in your direction and exit immediately once the trend direction starts and begins to reverse.

In the question about which type of style is used by the best traders or by the top traders the 2 methods above are the most commonly used gold techniques. Traders also can automate these scalping or intraday trading styles by implementing their trading strategies using automated robots.

For swing traders, leaving trades 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 isn't good as it requires a huge trading account balance & sometime it can result to huge draw downs.

For gold trading swing trading & position gold methods, leaving a trade open for too long, might mean these trades can reverse and move against you with a lot of pip movements & can even wipe your trading account, for this reason swing and position gold methods are not very popular. It's best to stick to trading scalping & day trading so as to better manage the money on your trading account.

It is not recommended for the online trader who is a beginner to leave orders open overnight, it's best to always close-out open orders at the end of the day.

XAU/USD News Traders - Types of Traders - News Trading - this news trader places orders during the economic news release time, either guessing the news will be positive/negative or placing pending orders above & below market price. News technique/method is risky as volatility is massive, whilst liquidity may be non-existent. You may & might not get filled or, worse, your stoploss order might & may 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 robot trader - automated trader is the type of trader who uses automated trading programs known as trading robots - EA Robots Expert Advisors(EAs) Robots to trade the online market. This automated trader will install an Automated Trading Robot on their trading software platform and the automated bot 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're new to automated xauusd trading & would like to find a gold trader using automated robots to help you come up with an automated trading bot, then you can find out more about automated trading on the Expert Advisors Article - MQL5 EA(Expert Advisor) Robots/Bots Forum.

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