Types of Stock Indices Traders: Scalpers, Day Traders, Swing Traders & Position Trading
Types of Stock Indices Traders
There are different types of Stock Indices traders. The type of a trader one is depends on the amount of time that they hold their stock indices trade transactions.
The different types of stock indices traders also use different chart time frames to place their stock index trades.
The different types of Stock Indices traders are:
- Scalpers
- Day traders
- Swing traders
- Position Indices traders
Each type of Stock Indices trader is explained below and as a beginner trader you can decide which type of Stock Indices trader you want to be based on your trading personality and the stock index chart time frame that you would want to be trading with.
Types of Stock Indices Traders
The Stock Indices traders who are scalpers hold on to their stock index 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 Indices traders that make many stock indices transactions in one day and participate in stock index trading during the busiest market hours of the stock indices trading market. A scalper stock indices trader can open anywhere between 30 to 50 stock index trades per day.
Scalpers are Stock Indices traders who can make quick decisions.
Scalpers use 1 min charts to put their stock indices orders. They use 5 minutes Stock Indices chart time frame to determine the stock indices trend, if the stock indices trend is going up or down and to decide their entry and exit.
Scalper 5 minutes stock indices time frame stock indices strategy
A Scalper using 1 min chart time frame wants to go long, checks 5 minute chart, looks like the stock indices example illustrated below, since it shows the stock indices trend is going up, the scalper will then decide it's okay to buy the stock indices.
Types of Stock Indices Traders - Scalpers - Scalping Stock Index - Scalper Stock Indices Trader
Types of Indices Traders
Stock Indices Day Trader - This type of Stock Indices trader holds on to their stock index 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 indices day trader makes 2 or 5 stock indices transactions in one day, participating during the busiest times of the stock indices market & they do not hold their stock indices orders overnight.
These Stock Indices traders use the 15 min Stock Indices Trading charts to put their stock indices orders. They use 1 hour stock indices chart to determine the stock indices market trend, if it going up or down & to decide their entry and exit.
Stock Indices Day Trader 1 Hour time frame stock indices strategy
A Stock Indices day trader using 15 minutes chart wants to go long, checks 1 hour stock indices chart time frame, it looks like the stock indices example illustrated below, since it shows the stock indices market stock indices trend is going up, the stock indices day trader will then decide it's okay to buy the stock indices.
Types of Stock Index Market Traders - Stock Indices Day Traders - Stock Index Day Trading - Types of Stock Indices Traders
Types of Stock Indices Traders
Stock Indices Swing Traders - This type of stock indices trader holds on to their Indices trades for a few days to a week - with the objective of making a large number of pips in profit, 100 to 400 pips.
This type of stock index trading market trader makes an average of 2 to 5 stock indices transactions in one week, holding onto their trades overnight. Swing stock indices method requires stock indices traders who are patient.
This type of stock indices trader uses the 1 hour Stock Indices Trading charts to put their stock indices orders. Swing traders use the 4 hour stock indices chart to determine the Stock Indices trend, if it is going up or down and to decide their entry and exit.
Stock Indices Swing Trader 4 Hour chart time frame stock indices strategy
A stock indices swing trader using 1 hour candlesticks charts wants to go short, checks 4 hour candlesticks chart, it looks like the stock indices example illustrated below, since it shows the stock indices trend is going down, the swing stock indices trader will then decide it's okay to Sell/Go Short the stock indices.
Types of Stock Indices Traders - Swing Traders - Swing Stock Index - Swing Traders
Types of Stock Indices Traders
Position Traders - This type of stock indices trader holds on to their stock indices transaction for weeks or months. With the objective of making a large number of pips, 300 to 1000 pips.
Position Traders place an average of 2 to 5 orders in a year, position stock indices method requires those who are patient, experienced and have huge account balances that can withstand huge draw-downs.
Position stock indices traders use 1 day or weekly stock indices charts to put their stock indices orders. They use weekly stock indices chart to determine the trend, if it going up or down and to decide their entry and exit.
Types of Indices Traders
Position stock indices trader using the daily candlesticks charts wants to go short, checks weekly stock indices chart time frame, it looks like the stock indices example illustrated below, since weekly stock indices chart time frame shows the stock indices trend is going down, the position stock indices trader will then decide it is okay to sell - Go short.
Types of Stock Indices Traders - Position Traders - Position Stock Index - Position Traders
Types of Stock Indices Traders
The most popular type of Stock Indices trader or the best Stock Indices trader type is the day trader and scalper stock indices trader depending on the method of stock indices of each trader, but these two stock indices methods are the most widely chosen stock indices methods. Scalping stock indices and requires those that can make quick decisions while stock indices day trading is for those who want their stock index trades to run for longer and have more time when making stock indices decisions. When starting it is best to try stock indices scalping or stock indices day trading. This stock indices methods are the best because you do not leave stock indices orders open for too long. At the same time you do not leave stock index trades open overnight and you can trade when you have time to watch the stock indices market movements. In Stock Indices Trading it is best keep stock indices orders open for as long as the stock indices trend setup is in your direction and exit immediately once the stock indices trend direction starts to reverse.
When it comes to the question about which type of stock indices style is used by the best Stock Indices traders or by the top Stock Indices traders the two stock indices methods above are the most commonly used stock indices methods. Traders can also automate these scalping or day trading styles by implementing their stock indices strategies using automated stock index trading bots.
For stock indices swing traders, leaving stock indices trade transactions too long can also take up your profit & this stock indices method also requires a lot of skills so it is best to stick to the short term stock indices methods for most beginner Stock Indices traders.
Position stock indices is not good as it requires a huge account balance and sometime it can result to huge draw-downs.
For stock indices swing trading & position stock indices methods, leaving a stock indices 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 stock index trading account, for this reason swing & position stock indices methods are not very popular. It is best to stick to stock indices scalping and stock indices day trading so as to better manage the funds in your stock index trading account.
It is not recommended for the Stock Indices trader who is a beginner trader to leave orders open overnight, it is best to always close open stock indices orders at the end of the day.
Stock Indices Trading News Traders - Types of Stock Indices Traders - Stock Indices Trading News Trading - this stock indices news trader places stock indices orders during economic news release time, either guessing the news will be positive/negative or placing pending stock indices orders above & below the stock index price. Stock Indices Trading 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! Stock Indices Trading News Trading method can be very profitable for some stock indices traders but requires some skills.
Stock Indices Robot Traders - Types of Stock Indices Traders - Automated Stock Indices Traders - the stock index trading robot trader - automated stock indices trader is the type of stock indices trader that uses automated stock indices programs known as stock index trading robots - EA Expert Advisors Automated Robots to trade the online stock indices market. This automated stock indices trader will setup an Automated Stock Indices Robot on their stock index trading software & the automated trading bot will then open & close trades on behalf of the trader based on the strategy that has been used to program this automated stock index trading bot. If you are new to automated stock index 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 Indices Expert Advisors Article - MQL5 Stock Indices EA Robots Forum.
