WHAT TYPE OF TRADER ARE YOU?👨‍🎓👩‍🎓

2 авг. 2022 г.

⚠️Who is a Trader?

✅A trader is a trader, a speculator, acting on his own initiative and seeking to profit directly from the trading process. This usually means trading securities (stocks, bonds, futures, options) on the stock exchange.

✅Traders are also called traders in the foreign exchange (including forex) and commodity markets (for example, "oil trader"). Trading is carried out by a trader on both the exchange and over-the-counter markets.

✅The trader should not be confused with other traders who carry out transactions at the request of clients or in their interests (dealer, broker, distributor).

❗️What kind of traders are there? Types of traders:

1️⃣Scalper

Scalping is a trading strategy that involves making a large number of transactions within a day. Scalpers make at least 10 trades a day. With an active market, professionals can make up to 100 trades. Scalpers play on small price fluctuations to get a small profit from each transaction. Often, a transaction can last less than a minute.

Scalping can be considered a profession. The scalper's workplace is his scalper terminal. Here he spends a full working day. Scalpers analyze the market by the glass, the tape of transactions and clusters, less often by charts. As a rule, scalpers do not use technical analysis indicators for analysis. The main working timeframes of the scalper are from 1m to 5m.

Many traders start with scalping. In theory, a scalper can seriously disperse a small deposit within a short time. Also, making a large number of transactions allows you to “fill your hand" faster. However, scalping requires a trader to be stress-resistant, disciplined and willing to learn from losses.

2️⃣Day Trader

Day traders also trade within the day. They do not transfer transactions “through the night”, closing positions during the day or trading session (depending on the type of market, stock or cryptocurrency). As a rule, day traders make 5-10 trades a day.

The market is analyzed through a glass, a tape of transactions, clusters and charts. Sometimes technical indicators are used. The working timeframes of day traders are from 5m to 1h.

This type of trading is less demanding on the trader than scalping. But it also requires stress tolerance and willingness to spend your day at the computer. It will not be possible to fully trade inside the day via the phone.

For successful trading, scalpers and day traders must adhere to strict risk management. They set the daily drawdown and determine the drawdown for each trade. As soon as a trader reaches the daily drawdown level, trading for the current day ends for him.

3️⃣Swing Trader

Swing trading is based on capturing one major movement in the market (one "swing" of the price). Its essence is to exit the transaction before the price goes back to correction.

Swing trading is different from day trading, which usually involves more frequent short positions and more active trading. It is also different from long-term investments and buy-and-hold strategies that take place over a long period of time.

Swing trading refers to medium-term trades ranging from a few days to weeks. This technique got its name because of the determination of the maximum and minimum of each oscillation. Its essence consists in opening medium-term positions on the asset, which are held from several days to weeks.

Choosing the time to hold a position in the market at the bottom or height of each medium—term trend is what distinguishes a swing trader from a day trader. Swing traders conduct extensive market research, be it fundamental or technical analysis.

Anyone can become a swing trader. Start by understanding the definition of what swing trading means, learn all the basics. and then start researching whether swing trading is right for you.

What type of trading do you prefer?

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