Types of Trade Styles

Types of Traders: Scalper Traders, Day Traders and Swing Traders

Traders are categorized differently based on the length of time they maintain their open transaction positions.

These traders also use different chart timeframes to place their trades.

The different types of traders are:

Scalper traders
Day traders
Swing traders
Position traders

Scalper Traders

A scalper is a trader who maintains their open trade deals for only a few minutes. The primary objective is to make a modest number of pips in profit - 10 to 20 pips.

Scalpers engage in numerous trading positions in one day, operating during the busiest hours.

Scalpers are traders that can make quick trading decisions.

Gold scalpers check 1-minute and 5-minute charts for trades. They spot the trend on the 5-minute chart, up or down. Then, they pick entry and exit on the 1-minute chart.

Day Traders

Day Traders are traders who keep their trades open for a few hours, but not longer than one day, with the main goal of making a good number of pips, like 30 to 70.

Day traders make 1-3 trades in a single day, trading when the market is most active, and they do not keep their trade positions open while they are not trading.

Day traders check 15-minute and one-hour charts for entries. They use the one-hour view for trend direction, up or down. Then the 15-minute chart sets entry and exit spots.

Swing Traders

These are gold traders that keep their open trade transactions going for a few days up to a week, hoping to gain a large number of pips, like 100 to 300 pips.

Swing traders typically open 2 to 5 positions per week. They hold trades overnight. Gold swing trading needs patient traders.

Swing traders often utilize 1-hour (1H) and 4-hour (4H) charts for their analysis. They rely on the 4H chart to observe market trends - whether upwards or downwards - and use the 1H chart to fine-tune their entry and exit points.

Position traders

These are the Gold traders who keep their trades going for several weeks or months, with the goal of making a lot of pips, from 300 to 800 pips.

Position traders average just two to five trades per year. This style needs patient experts with large accounts that handle big drawdowns.

Position traders check daily and weekly charts. Weekly views set the trend direction. Daily charts pick entry and exit points.

What type of trader is the best?

Day traders and gold swing traders lead the pack. Start with day trades. Gain skill, then swing. They fit beginners well.

Scalping trading is also popular among traders.

Position trading is less favored because this trading style necessitates a significant account balance, which may occasionally result in substantial drawdowns.

Types of Traders: Explore various trading methods, styles, and classifications within the trading community.

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