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 of time that they hold their trades.

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 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 couple of minutes. With main objective of earning a small number 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/down and to decide their entry & exit.

Scalper 5 minutes xauusd time frame strategy

A Scalper using 1 minute chart timeframe wants to go long, checks 5 minutes trading 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.

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 transactions 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 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 minutes trading charts to put their 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 1 hour 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.

Methods of Scalping Trading, Day Trading XAUUSD, Swing Trading & Position Trading 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 on to 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 & 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 open 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.

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

Types of Traders - Swing 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 an average of 2 to 5 orders in a year, position gold method requires those who are patient, experienced & 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 price trend, if it going up or down & 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 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's okay to sell - Go short.

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

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 don't 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 set-up 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 also can automate these scalping or intra-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 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 transaction open for too long, may 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 is best to stick to trading scalping & 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 might 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 trading market. This automated trader will install an Automated Robot on their trading software 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 gold 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.

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