In today’s article we will see the types of traders that are usually in the markets. All these types of traders can be presented depending on how long you want to take to collect profits. And, if you want large or small profits or perhaps you may have a large or small capital.
Despite all this, you must bear in mind that the market does not care about the effort invested. Or, if you are stuck for hours in front of the screen or that you have family obligations. So, what really matters is the sense of smell you may have and the mastery that you may have when carrying out your financial operations. So, let’s discover what type of trader you are!
Who are scalper traders?
Scalper or Scalping is the fastest type of trading. Normally if you want to be like these you will have to keep the operations open for just a few seconds or minutes. So, you will need to be able to even open several operations during a session. These types of traders do not stay more than two hours in front of the computer. Why? Because they think “tomorrow is another day and we are not here to waste time”.
These types of traders usually make one to three trades in a session that usually last two hours in total and earn between $50 and $500 per contract.
Day traders
Day Trader is also called intraday. It is a style of trading where operations take place during the day. So, it is rare to see open positions during the night. These operations usually last a few minutes. Trades can be opened daily. To do day trading it is necessary, above all, maximum concentration, great previous experience and above all a strong and agile management of capital and risk.
The management of very important psych trading and dedicating at least 4 to 6 hours a day to it, makes you a day trader. Many of these traders put the operation during the morning and remove it perhaps in the afternoon or at night. Either because you have profits or because the stops loss has jumped, do not forget that they are the ones that save you from having more losses than necessary. A day trader aspires to earn between 500 and 1000 dollars. Up to date his strategy is based on reading the marking well and making it allow him to receive as a prize.
Swing trader, are you one?
Finally, we have Swing Trading. These use fewer operations than the previous types of traders and use longer periods of time, such as a week for four hours every day. This method has the objective of choosing broad movements of the market and represents a series of benefits. For example, it helps you gain experience, which is super important. The risk and the position are controlled more easily, the psychological demand is less, since you have more time to mature each operation.
The good thing is that you can dedicate yourself to them, because they are only about three hours a week. For example, you can also have thousands of charts to know and operate what you are doing, which may be indices or commodities.
So, we hope that this article has helped you to clarify a little the differences between the different types of traders. Now you will have an idea of what type of trader you would like to be. The best stock traders have started out as scalpers. So, you decide which of all you want to be.