TYPES OF TRADER IN THE STOCK MARKET

 TYPES OF TRADERS IN THE STOCK MARKET:

 

SCALPING:

• The scalping trader analysis is done on smaller time frames usually 1 to 5 minutes time frames.
• Scalping traders tend to have smaller targets due to very short trade durations.
• Scalpers tend to have trade frequency due to the small risk on each trade.
• Scalping traders expect small price changes moreover fast profit.

 

DAY TRADING:

• Intraday traders typically opened and closed within a day.
• Analysis done on intraday time frames, usually 15 minutes to 4 hours’ time frames.
• A day trader must knowledge of price action strategies (Technical analysis)
• The intra-day trader is must strong in emotional control.

 

SWING TRADING;

• A swing trader typically between 2 days to 6 months.
• The analysis is done on longer time frames, usually, daily, weekly, and monthly time frames.

 

 

SCALPING	DAY TRADING	SWING TRADING
Few seconds to minutes	Minutes to hours	2 days to months
1,2,3 and 5 minutes	30 minutes, 1 to 4 hours	Daily. Weekly, monthly
Very small profits targets	Mid-range profit target	Large profit targets
High trade frequency	Medium trade frequency	Low trade frequency