#TradingTypes101
There are various types of traders, classified by their style, time horizon, and strategy. Here is a list of the most common ones:
🕒 According to time horizon:
1. Scalper
Makes many quick trades (minutes or seconds).
Seeks small, consistent profits.
Requires high concentration and good execution.
2. Day Trader
Opens and closes trades within the same day.
Avoids leaving positions open overnight.
Uses technical analysis and immediate news.
3. Swing Trader
Holds trades for days or weeks.
Relies on market patterns and cycles.
Requires patience and technical/fundamental analysis.
4. Position Trader (or Trend Trader)
Trades long-term (weeks or months).
Focuses on large market movements.
Uses fundamental analysis and macroeconomic trends.
🎯 According to strategy:
5. Technical Trader
Uses charts, indicators, and price patterns.
Does not focus on news or fundamentals.
6. Fundamental Trader
Bases decisions on economic, political, or financial data.
Common in stocks, forex, and cryptocurrencies.
7. Quantitative Trader (Quant)
Uses algorithms, mathematical models, and statistics.
Trades automatically.
8. News Trader
Takes advantage of volatility generated by events.
Trades quickly after economic or political announcements.
🧠 According to psychological approach:
9. Discretionary Trader
Makes manual decisions based on experience and judgment.
10. Systematic Trader
Follows fixed or automated rules.
Reduces emotional component.