Trade Stock Indices

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What Are Different Types of Traders? - Different Types of Trading

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

There are different types of traders depending on the amount of time that they hold their open stock indexes trades.


These traders also use different chart time frames to place their stock indexes trades.

The different types of indices traders are:


  1. Scalpers

  2. Day traders

  3. Swing traders

  4. Position traders


Indices Scalpers

Scalpers are the traders that hold on to their open stock indexes trades for only a few minutes. With the objective of making a small amount of pips, 10 to 20 pips.

Scalpers make many trades in one day, trading indices during the busiest times of the day.

Scalpers are traders that can make quick trading decisions.

Indices Scalpers use 1 minute charts and 5 minutes charts to place their trades. They use 5 min chart to determine the indices trend, if it going up or down, then use 1 min chart to decide their entry and exit points.


Day Traders

Stock Indexes Day Traders are the traders that hold on to their open trades for a few hours but not more than a day. With the objective of making quite a number of pips, 30 to 70 pips

Day traders make 1 or 3 trades in one day, trading indices during the busiest times of the day and they do not hold their open stock indexes trades overnight.

Day traders use 15 minute charts and 1 hour charts to lace their stock indexes trades. They use 1 hour chart to determine the indices trend, if it going up or down, then use 15 min chart to decide their entry and exit points.

Swing Traders

These are the traders that hold on to their open stock indexes trades for a few days to a week. With the objective of making a large number of pips, 100 to 300 pips

Swing traders make an average of 2 to 5 trades in one week, holding onto their open stock indexes trades overnight. Indices swing trading requires traders who are patient.

Swing traders use 1 hour charts and 4 hour charts to place their stock indexes trades. They use 4 hour charts to determine the trend, if it going up or down, then use 1 hour chart to decide their entry and exit.


Position traders

These are the traders that hold on to their trades for weeks or months. With the objective of making a large number of pips, 300 to 800 pips.

Position traders make an average of 2 to 5 trades in a year, Position trading requires traders who are patient, experienced and have huge account balances that can withstand huge draw-downs.

Position traders use 1 day and weekly charts to put their trades. They use weekly charts to determine the indices trend, if it going up or down, then use 1 day chart to decide their entry and exit.

What type of indices trader is the best?

The most profitable type of trader is the indices day trader and indices swing trader. When starting its best to try indices day trading and with some experience try indices swing trading. These trading methods are most suitable for beginner traders.

Scalping trading is also popular among traders.

Position trading is not very popular because this type of trading requires a huge indices trading account balance and sometime it can result to huge indices draw downs.


What Are Different Types of Traders? - Different Types of Trading - Types of Trade Styles - How Many Types of Trading are There

 

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