Trade Gold Trading

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

Types of Traders

There are different categories of people who trade. What kind of xauusd trader someone is depends on how much they trade and how long they keep trades open.

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

Different types of traders are described below. As a beginner, you can decide which type suits you based on your personality and preferred trading timeframes.

Types of Traders - Scalping Trading

Scalpers are traders who only keep their trades going for a few minutes, aiming to get a small profit of 5 to 10 or 20 pips.

Scalpers are traders focusing on high-frequency transactions within a single day. When participating in gold trading during peak market hours, they may execute around 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 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.

Day traders do two to five gold deals in a day. They trade in peak hours and close before night.

These traders use the 15 Minutes 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 operating on a 15-minute chart wishes to enter a long trade and consults the 1H timeframe, observing a scenario mirroring the examples shown and explained below: recognizing the upward price trend on this higher timeframe, the day trader will then determine that initiating a gold purchase is appropriate.

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

Classifications of Market Participants - Including Gold Day Traders, Intraday Trading, and Trader Types:

XAU/USD Swing Trading

Gold Swing Traders - The goal of this sort of trader is to earn a significant number of pips in profit, between 100 and 400, by holding onto their transactions for a few days to a week.

This kind of trader usually makes between two and five gold trades each week, keeping their trades active while they sleep. The swing gold method needs traders who are willing to wait.

This trader type uses 1-hour charts for orders. Swing traders check 4-hour charts for the trend direction and entry or exit points.

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 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 category of trader maintains open positions for durations spanning several weeks or months. Their primary objective is realizing substantial profits, typically in the range of 300 to 1000 pips.

Position Traders typically place and open an average of 2 to 5 trade orders annually. The position trading method requires individuals who are patient, experienced, and possess substantial trading account balances capable of enduring significant drawdowns.

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 questions about which style top traders use, the two methods above are the most common gold trading ways. Traders can also set up these scalping or intraday trading styles with automated robots that follow their trading strategies.

Swing traders risk losing gains if they hold too long. This approach needs skill. Beginners should use short-term gold strategies instead.

Position trading isn't good as it requires a huge trading account balance & sometime it can result to huge draw downs.

Swing trading and position gold techniques, for instance, are not widely used since keeping a transaction open for too long may cause it to reverse and move against you with a lot of pip movements, perhaps even wiping out your trading account. To manage the funds in your trading account more effectively, it is advisable to concentrate on day trading and scalping trading.

It's not a good idea for new online traders to leave orders running overnight: it's better to always close them at the end of the day.

XAU/USD news traders focus on news releases. They place orders then, betting if news is good or bad. Or they set pending orders above and below the price. This method brings high risk from wild swings. Liquidity can vanish too. You might not get your order filled. Or your stop loss could fail. Some traders profit big from it, but it takes real skill.

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.

Study More Guides & Lessons:

Gold Broker