What type of trader you depend upon your attitude, strategy, working style and personality. Most of the trader now trading own and unique way which is sometimes more beneficial also.
Different Type of Trader
I am just trying to categorize you on the different type of trader as voting conduct by a USA based organization
Day Trader:
- Looks for multiple daily trades
- Grains to profit from little market changes
- Not involved in overnight risk
- Plans for 10 to 20 positions a day
- Greatly opportunistic
- Inspired by heightened market volatilization
Swing Trader:
- Focuses on Return performance and trends
- Looks for authoritative trends and withdrawals at prices
- Neglects breaking news e.g. firm earnings
- Highlights precise entry and exit points
Technical Trader:
- Appropriates traditional price trends
- Predicts that story usually repeats itself
- just Overlooks breaking news e.g. earnings reports, boardroom uncertainty
- Very Mechanical and systematic in strategy
Fundamental Trader:
- Study the true worth of an asset
- Looks for magnified or depreciated prices
- Observant to financial data firm earnings and research
Long Term Trader:
- Utilizes a buy and hold tactics
- Typically places money into the markets as struggled to remain in the bank account earning least interest.
- Utilizes expanded betting or CFDs as a hedging tool opposite losses to investments.
More Detail on Specific Trader Type
Day Trader:
Day traders place multiple trades throughout the programme of the trading day and seek to profit from small movements in the markets. No overnight risk is typical hell, and traders should seem to put as many as 10 to 20 positions in an individual trading session.
Day traders are extremely opportunistic, seeking to grow the largest out of all market progress, particularly throughout times of strengthened market buoyancy. Day traders are acknowledged, however, to ‘chase’ the markets and genin the necessary recurrence of trading, you need to have a powerful sense of understanding of the markets as well as being moderately mechanical in trading, taking failures on the chin and refraining from making your emotions turn your trading.
Swing Trader:
Swing traders look to get the most out price swings in the markets, when prices are in a definitive trend and also seek to spot reversals in prices. Swing traders are professional in nature, keeping mainly to neglect the turbulence of breaking news or company earnings to focus particularly on price performance and trends. Swing traders don’t let their emotions influence their trading behavior and pay strict attention to pure price performance to help them to determine their next trades.
Technical Trader:
A technical trader or technical critic attempts to employ actual price trends to fix the expected price movement. Technical traders adhere to the assumption that records normally replicates itself, neglecting much of the turbulence in the markets that can be generated from breaking news, earnings records or boardroom mobility etc. The technical trader is very standardized and systematic and employs a range of technical pointers such as a moving average to highlight where present prices are directing and how to trade them.
They can use the broad array technical indicators such as manageable moving average(MA), the relative of the strong index (RSI) or drive to help them to see the present price trend and spot trading possibilities.
Fundamental Trader:
Fundamental trader endeavors to analyze the actual value of an asset, be it a share, currency or metal, highlighting latent trading chances, during the underlying price in the market for that asset symbolizes if prices are exaggerated or depreciated.
Fundamental traders are normally very systematic, with a great knowledge of a special asset and of common factors that may affect the pricing of that asset. For instance, for a company, the fundamental critic would watch at earnings records and trading updates and also judge important themes that may affect how that company is likely to make moving ahead, such as interest rates or local sales.
Long Term Trader:
Long Term Trader generally assumes a buy and hold strategy, which typically means buying an asset such as a share and holding onto that asset for a number of years until it rises in cost. With the FTSE 100 or Dow Jones typically viewing the average annual increase the rate of between 5% – 10%, this can determine to be a good long-term strategy for many investors, who favor putting their money into the markets as objected to resting in their bank account earning minimal interest.
Of Course, there is a risk with this strategy, particularly in bear markets, that can see major indices see 20% corrections in a short space of time. This is where using spread betting or CFDs can be even more worthwhile as a hedging tool to mitigate against the risk of your long-term investments losing value. As you can use covered betting or CFDs to benefit from markets falling in cost, long-term investors can go little to the importance of their substantial holdings, meaning that any decline in rate in their portfolio can be boarded by a profit in their quick market trade.