Types of traders: What types of traders are there and how do they trade?

Types of traders: What types of traders are there and how do they trade?

November 5, 2021
24 days ago

Before you invest in the stock market, the first thing you need to find out is what kind of trader you are. There are many different styles of trading, and not all of them need to work in the same way with your lifestyle. For example, if you have a pet that you love to pamper and spoil 24 hours a day, or you have a child that keeps asking you to take them to the park, Scalping is not going to work well for you.

Knowing these profiles will help you decide which type of account and broker best suits your needs. Let's get to it!

Scalpers Scalpers are traders who trade with large investments and make trades in a matter of minutes or seconds. Scalping, or short selling, can go wrong quickly. It is often done on short notice, without sufficient market research, resulting in very bad trades.

Day traders Day traders ~~cover the day shift of Nigth Traders~~, they trade on the way to work, after work or during lunch breaks..... This is the most common trading style for traders just starting out in the markets. This way of trading consists of calculating the probabilities of an asset going up or down in value, and waiting for the same day to reach the trading zone from which you can profit.

Swing traders The job of a swing trader is to trade stocks with high frequency. Their aim is to follow the movement of the charts for weeks at a time and decide to invest when the trend could benefit them.

The main difference between swing trading and other forms of trading is that swing trading is risky because it can be done without fundamentals. If you look at the chart of any asset, you will see that there are seasons when it goes up in value and seasons when it goes down. Anyone would think that it is a good idea to invest when the stock is going down in price, because later, by logic or intuition, it will end up going up. And we must tell you something, trading without training is not trading, it is playing the lottery by buying very expensive tickets.

Investors Investors use their own money and trade in large volumes. They are very uncomfortable during dips and find their most comfortable place at high points. In this case, they buy at a "low" price and go for the potential upside that an asset will have for years to come. As if you had bought Amazon shares 20 years ago, anticipating that today they would be worth 100 times more.

Finally, we would like to remind you that you can continue learning Trading in the best way with the Canal Trader Masterclass, with 40 financial training sessions full of formative and human quality, which will help you to order and structure the market with head.

We hope to have helped you once again, may the market be with you!

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