There are several main types of traders, differing by trading style, timeframes, and market approach. Here is a brief overview of the main types:
1. Scalper
Trade horizon: seconds – minutes
Trade frequency: very high
Goal: profit from minimal price fluctuations
Characteristic: quick reaction, high concentration
Instruments: often — futures, currencies, cryptocurrency
Suitable for those who:
Calm under pressure
Has quick thinking
Can sit in front of the screen all day
2. Day trader (intraday trader)
Trade horizon: within a day
Trade frequency: average
Goal: catch movements within a day
Feature: does not hold positions overnight
Suitable for those who:
Have time to trade every day
Likes to see results quickly
Able to maintain discipline
3. Swing trader
Trade horizon: from several days to a couple of weeks
Trade frequency: moderate
Goal: catch short-term trends
Analysis: technical and fundamental
Suitable for those who:
Cannot monitor the market all day
Loves to analyze charts
Calm about holding positions
4. Position trader
Trade horizon: weeks, months, sometimes — years
Trade frequency: low
Goal: use long-term trends
Analysis: mainly fundamental
Suitable for those who:
Do not want to trade actively
Willing to endure volatility
Has a long-term view
5. Arbitrage trader
Essence: uses price differences of the same asset across different markets
Example: buying Bitcoin on Binance and selling it on another exchange for a higher price
Suitable for those who:
Understands market mechanics
Has access to technology and fast communication
Engages in algorithmic trading
How to understand what kind of trader you are?
1. Determine how much time you are willing to spend daily
A lot of time → Scalping, day trading
Little time → Swing or positional trading
2. Assess your stress tolerance
Do you not like to take risks? → Positional
Is adrenaline and excitement appealing? → Scalping
3. Analyze your analytical skills
Love charts, candles, levels → Technical analysis
Prefer to read reports, news → Fundamental analysis
4. Try a demo account
Trade in different styles and see where you feel more comfortable and profitable
