Types of Stock Traders: Scalpers, Day Traders, Swing Traders and Position Trading
Types of Stock Traders
There are different types of Stock traders. The type of a trader one is depends on the amount of time which they hold their stock trade transactions.
The different types of stocks traders also use different chart timeframes to place their stocks trades.
The different types of Stock traders are:
- Scalpers
- Day traders
- Swing traders
- Position Stocks traders
Each type of Stock trader is explained below and as a beginner stock trader you can decide which type of Stock trader you want to be based on your trading personality and the stocks chart timeframe that you would want to be trading with.
Types of Stocks Traders - Scalping Stocks Trading
The Stock traders who are scalpers hold on to their stocks 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 Stock traders that make many stock trading transactions in one day and participate in stock trading during the busiest times of the stocks market. A scalper stock trader can open anywhere between 30 to 50 stocks trades per day.
Scalpers are Stock traders who can make quick decisions.
Scalpers use 1 min stock charts to put their stock orders. They use 5 minutes Stock chart timeframe to determine the stock trend, if the stock trend is going up or down and to decide their entry and exit.
Scalper 5 minutes stocks trading time frame stocks trading strategy
A Scalper using 1 min stocks chart timeframe wants to go long, checks 5 minute stocks chart, looks like the stocks example illustrated & explained below, since it shows the stock trend is going up, the scalper will then decide it's okay to buy stock.
Types of Stock Traders - Stock Trading Scalpers - Scalping Stock Trading - Scalper Stock Trader
Day Trading Stocks
Stock Day Trader - This type of Stock trader holds on to their stocks trades for a few hours but not more than a day. With the aim to make quite a number of pips in profit: 30 to 70 pips.
The stock day trader makes 2 or 5 stock trading transactions in one day, participating during the busiest times of the stocks market & they don't hold their stock trade orders overnight.
These Stock traders use the 15 min Stock charts to put their stock orders. They use 1H stock chart to determine the stocks market trend, if it going up or down & to decide their entry and exit.
Stocks Day Trader 1 Hour time frame stocks trading strategy
A Stock day trader using 15 min stock chart wants to go long, checks 1 hour stocks chart timeframe, it looks like the stocks example illustrated & explained below, since it shows the stocks market trend is going up, the stock day trader will then decide it's okay to buy stock.
Types of Stock Trading Market Traders - Stock Day Traders - Stocks Day Trading - Types of Stock Traders
Stocks Swing Trading
Stock Swing Traders - This type of stock trader holds on to their Stock 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 stocks trader makes an average of 2 to 5 stock trading transactions in one week, holding onto their trades overnight. Swing stock trading method requires stock traders who are patient.
This type of stock trader uses the 1 hour Stock charts to put their stock orders. Swing traders use the 4H stock chart to determine the Stock trend, if it is going up or down and to decide their entry and exit.
Stocks Swing Trader 4 Hour chart timeframe stocks trading strategy
A stock swing trader using 1 hour stock candlesticks charts wants to go short, checks 4 hour stock candlesticks chart, it looks like the stocks example illustrated & explained below, since it shows the stock trend is going down, the swing stock trader will then decide it's okay to Sell/Go Short stock.
Types of Stock Traders - Swing Traders - Swing Stock Trading - Swing Stock Traders
Position Stocks Trading
Position Stock Traders - This type of stock trader holds on to their stock trade for weeks or months. With the main aim of making a big number of pips profit, 300 to 1000 pips.
Position Stock Traders place an average of 2 to 5 orders in a year, position stock trading method requires those who are patient, experienced and have huge account balances that can withstand huge draw-downs.
Position stock traders use 1 day or weekly stock charts to put their stock orders. They use weekly stock chart to determine the stock trend, if it going up or down and to decide their entry and exit.
Stocks Position Trader Weekly stocks chart timeframe stocks trading strategy
Position stock trader using the daily stock candlesticks charts wants to go short, checks weekly stocks chart timeframe, it looks like the stocks trading example illustrated and explained below, since weekly stocks chart timeframe shows the stock trend is going down, the position stock trader will then decide it is okay to sell - Go short.
Types of Stock Traders - Position Stock Traders - Position Stock Trading - Position Stock Traders
Types of Stock Traders
The most popular type of Stock trader or the best Stock trader type is the day trader and scalper stock trader depending on the method of stock trading of each trader, but these two stock trading methods are the most widely chosen stock trading methods. Scalping stocks trading requires those that can make quick decisions while stock day trading is for those who want their stocks trades to run for longer and have more time when making stock trading decisions. When starting it is best to try stock trading scalping or stock day trading. This stock trading methods are the best because you do not leave stock orders open for too long. At the same time you do not leave stocks trades open overnight and you can trade when you have time to watch the stocks market movements. In Stocks it is best keep stock orders open for as long as the stock trend setup is in your direction and exit immediately once the stock trend direction starts to reverse.
When it comes to the question about which type of stock trading style is used by the best Stock traders or by the top Stock traders the two stock trading methods above are the most commonly used stock trading methods. Stock traders can also automate these scalping or day trading styles by implementing their stock trading strategies using automated stocks trading bots.
For stock swing traders, leaving stock trade transactions too long can also take up your profit & this stock trading method also requires a lot of skills so it is best to stick to the short term stock trading methods for most beginner Stock traders.
Position stock trading isn't good as it requires a huge account balance & sometime it can result to huge draw-downs.
For stock trading swing trading and position stock trading methods, leaving a stock 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 stocks account, for this reason swing & position stock trading methods are not very popular. It is best to stick to stock trading scalping and stock day trading so as to better manage the funds in your stocks trading account.
It is not recommended for the Stock trader who is a beginner trader to leave orders open overnight, it's best to always close open stock orders at the end of the day.
Stocks News Traders - Types of Stocks Traders - Stocks News Trading - this stock trading news trader places stock orders during economic news release time, either guessing the news will be positive/negative or placing pending stock orders above & below the stocks market stock price. Stocks News method is risky as volatility is massive, whilst liquidity might be non-existent. You might not get filled or, worse, your stop loss might not be honored! Stocks News Trading method can be very profitable for some stock traders but requires some skills.
Stock Bot Traders - Types of Stocks Traders - Automated Stock Traders - the stocks trading robot trader - automated stock trader is the type of stock trader that uses automated stock trading programs known as stocks trading robots - How to Trade Stocks with Automated EA Stocks Trading Bots - Stock Trading Expert Advisors - Robots to trade the online stocks market. This automated stock trader will install an Automated Stock Bot on their stock trading platform & the automated trading bot will then open and close trades on behalf of the trader based on the strategy which has been used to program this automated stocks trading bot. If you are new to automated stocks trading & would like to find a trader using automated trading robots to help you come up with an automated trading bot, then you can find out more about automated trading on the Stocks Expert-Advisors Article - MQL5 Stock Expert Advisor Robots Community.
