Types of Stock Traders: Scalpers, Day Traders, Swing Traders & 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 that they hold their stock trade transactions.

The different types of stock traders also use different chart time-frames to place their stock trades.

The different types of Stock traders are:

1. Scalpers
2. Day traders
3. Swing traders
4. Position traders

Each type of trader is explained below and as a beginner trader you can decide which type of trader you want to be based on your trading personality and the chart time frame that you would want to be trading with.

Types of Stock Traders

The Stock traders who are scalpers hold on to their stock 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 indices transactions in one day and participate in stock index trading during the busiest market hours of the trading market. A scalper stock trader can open anywhere between 30 to 50 stock trades per day.

Scalpers are Stock traders who can make quick decisions.

Scalpers use 1 min charts to put their stock orders. They use 5 minutes chart time frame to determine the trend, if the 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 min chart, looks like the example illustrated below, since it portrays the trend is heading up, the scalper will then decide it's okay to buy the stock indices.

Types of Stock Traders - Scalpers - Scalping Stock Index - Scalper Trader

Types of Traders

Stock Indices Day Trader - This type of trader holds on to their stock 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 day trader makes 2 or 5 stock indices transactions in one day, participating during the busiest times of the market & they don't hold their stock orders overnight.

These Stock traders use the 15 min Trade charts to put their stock orders. They use 1 hour stock chart to determine the 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 chart time frame, it looks like the example illustrated below, since it portrays the market stock trend is heading up, the day trader will then decide it's okay to buy the stock indices.

Types of Stock Index Market Traders - Stock Indices Day Traders - Day Trade - Types of Stock Traders

Types of Stock Traders

Stock Indices Swing Traders - This type of trader holds on to their 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 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 traders who are patient.

This type of trader uses the 1 hour Trade charts to put their stock orders. Swing traders use the 4 hour stock chart to determine the 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 candles charts wants to go short, checks 4 hour candlesticks chart, it looks like the example illustrated below, since it portrays the trend is heading down, the swing stock trader will then decide it's okay to Sell/Go Short the stock indices.

Types of Stock Traders - Swing Traders - Swing Stock Index - Swing Traders

Types of Stock Traders

Position Traders - This type of trader holds on to their stock indices transaction for weeks or months. With the objective of making a big 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 traders use 1 day or weekly stock charts to put their stock orders. They use weekly stock chart to determine the trend, if it going up or down and to decide their entry and exit.

Types of Traders

Position stock trader using the daily candles charts wants to go short, checks weekly stock chart time frame, it looks like the example illustrated below, since weekly stock chart time frame shows the trend is heading down, the position stock trader will then decide it is okay to sell - Go short.

Types of Stock Traders - Position Traders - Position Stock Index - Position Traders

Types of Stock Traders

The most popular type of trader or the best trader type is the day trader and scalper stock 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 day trading is for those who want their stock 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 day trading. This stock indices methods are the best because you do not leave orders open for too long. At the same time you do not leave stock trades open overnight and you can trade when you have time to watch the market movements. In Stock Indices Trading it is best keep stock orders open for as long as the trend setup is in your direction and exit immediately once the trend direction starts to reverse.

When it comes to the question about which type of stock indices style is used by the best Stock traders or by the top Stock 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 trading bots.

For stock indices swing traders, leaving stock 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 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 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 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 day trading so as to better manage the funds in your account.

It is not recommended for the trader who is a beginner trader to leave orders open overnight, it is best to always close open stock orders at the end of the day.

Stock Indices Trading News Traders - Types of Stock Traders - Stock Indices Trading News Trading - this stock indices 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 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 traders but requires some skills.

Stock Indices Robot Traders - Types of Stock Traders - Automated Stock Traders - the trading robot trader - automated stock trader is the type of trader that uses automated stock indices programs known as trading robots - EA Expert-Advisors Automated Robots to trade the online market. This automated stock trader will setup an Automated Stock Indices Robot on their 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 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 EA Robots Forum.