The different types of trader explained
Do you know the types of traders that operate the market? Do you know what kind of trader you want to be? Find out in this post where Jordi Martí, Head of Studies at La Factoría, tells us exactly what trading is and what kind of traders exist.
What is Trading?
Trading is simply the process of buying or selling financial assets over a temporary space of time. We can differentiate five types of traders based on how they usually operate over time.
The types of traders that exist in the markets are:
- 1. Scalpers
- 2. Day Traders
- 3. Swing Traders
- 4. Medium-term Traders
- 5. Long-term Traders
Scalpers are traders who make trades that can last seconds or minutes - and in some cases up to 25 minutes, but not much longer.
Day Traders, are traders who make and close trades on the same day.
The third type are Swing Traders. They operate over days or weeks so that a trend can take its course before closing.
Medium-term Traders are those who trade for months, leaving trades open for up to 9 months.
And finally, there is Long-term Traders. These traders are in it for the very-long term - meaning that their trades could be opened and then closed over a period of up to 10 years.
As you can see, the space of time distinguishes what type of trader you are, from the Scalper that operates in minutes - or can even make operations that do not reach a minute - to the Long Term Trader whose operations can last for years. That said, also consider the words of David Galán, who said, "there are two types of traders, those who have a method and manage their risk and those who go bankrupt."
Head of Studies at Canal Trader
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