Different Types of Traders

Different Types of Traders

  • Scalping: The scalper is an individual who makes dozens or hundreds of trades per day, trying to “scalp” a small profit from each trade by exploiting the bid-ask spread.
  • Momentum Trading: Momentum traders look to find stocks that are moving significantly in one direction on high volume and try to jump on board to ride the momentum train to a desired profit.
  • Technical Trading: Technical traders are obsessed with charts and graphs, watching lines on stock or index graphs for signs of convergence or divergence that might indicate buy or sell signals.
  • Fundamental Trading: Fundamentalists trade companies based on fundamental analysis, which examines things like corporate events such as actual or anticipated earnings reports, stock splits, reorganizations or acquisitions.
  • Swing Trading: Swing traders are really fundamental traders who hold their positions longer than a single day. Most fundamentalists are actually swing traders since changes in corporate fundamentals generally require several days or even weeks to produce a price movement sufficient enough for the trader to claim a reasonable profit.

Novice traders might experiment with each of these techniques, but they should ultimately settle on a single niche, matching their investing knowledge and experience with a style to which they feel they can devote further research, education and practice.

Source: http://www.investopedia.com/

 

Timothy Sykes profit.ly profits

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2 thoughts on “Different Types of Traders”

  1. From the looks of it, I guess right now, I am a mix between a Technical Trader and a Fundamental Trader. I like to analyze charts and see signs that mean I can go ahead and buy or sell, yet I also like examine stock splits, acquisitions or reports. I guess I like to see hard data in front of me before I commit to something.

    Liked by 1 person

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