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

Types of Traders

There are different types of traders. The type of a trader one is depends on the amount of time which they hold their trade transactions.

The different types of traders also use different chart time-frames 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

The traders who are scalpers hold on to their trades 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 trading transactions in one day and participate in silver trading during the busiest times of the trading market. A scalper trader can open anywhere between 30 to 50 trades per day.

Scalpers are traders that 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 time frame strategy

A Scalper using 1 minute chart time frame wants to go long, checks 5 minute chart, looks like the trading example explained and shown below, since it portrays the trend is moving up, the scalper will then decide it's okay to buy silver.

Types of Traders - Scalpers - Scalping Silver - Scalper Trader

Types of Traders

Day Trader - This type of trader holds on to their trades for a few hours but not more than a day. With the aim to make quite a number of pips profit, 30 to 70 pips.

The day trader makes 2 or 5 trading transactions in one day, participating during the busiest times of the trading market and they don't hold their trade orders overnight.

These traders use the 15 minutes charts to put their orders. They use 1H chart to determine the trading market trend, if it going up or down & to decide their entry & exit.

Day Trader 1 Hour time frame strategy

A day trader using 15 minutes chart wants to go long, checks 1H chart time frame, it looks like the trading example explained and shown below, since it portrays the trading market trend is moving up, the day trader will then decide it's okay to buy silver.

Types of Market Traders - Day Traders - Day Trade - Types of Traders

Types of Traders

Silver Swing Traders - This type of trader holds on to their trades for 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 trading transactions in one week, holding onto their trades overnight. Swing trading 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.

XAGUSD Swing Trader 4 Hour chart time frame strategy

A trading swing trader using 1 hour candlesticks charts wants to go short, checks 4 hour candlesticks chart, it looks like the trading example explained and shown below, since it portrays the trend is moving down, the swing trader will then decide it's okay to Sell/Go Short silver.

Types of Traders - Swing Traders - Swing Silver - Swing Traders

Types of Traders

Position Traders - This type of trader holds on to their trade for weeks or months. With the aim of making a big number of pips, 300 to 1000 pips.

Position Traders place an average of 2 to 5 orders in a year, position trading 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.

Types of Traders

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

Types of Traders - Position Traders - Position Silver - Position Traders

Types of Traders

The most popular type of trader or the best Silver trader type is the day trader & scalper trader depending on the method of trading of each trader, but these two silver methods are the most widely chosen silver 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 decisions. When starting it is best to try silver trading scalping or day trading. This trading 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 trading market movements. In 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.

When it comes to the question about which type of trading style is used by the best traders or by the top traders the two silver methods above are the most commonly used silver methods. traders can also automate these scalping or day trading styles by implementing their strategies using automated robots.

For silver trading swing traders, leaving trade transactions too long can also take up your profit and this trading method also requires a lot of skills so it is best to stick to the short term trading 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 silver trading swing trading & position trading 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 trading 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 account.

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

XAGUSD News Traders - Types of Traders - XAGUSD News Trading - this trading news trader places orders during economic news release time, either guessing the news will be positive/negative or placing pending orders above and below the trading market price. XAGUSD 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! XAGUSD News Trading technique can be very profitable for some traders but requires some skills.

Trading Robot Traders - Types of Traders - Automated Traders - the trading robot trader - automated trader is the type of trader that uses automated trading programs known as trading robots - EA Expert Advisors Robots to trade the online market. This automated trader will setup an Automated Robot on their silver trading platform and the automated robot will then open & close trades on behalf of the trader based on the trading strategy which has been used to program this automated robot. If you are new to automated xagusd trading and 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.