Types of Traders

in LeoFinancelast month

At some point we all identify with a trader, the mistake is that we try to copy it exactly, when each and every one of us is totally different and perhaps the strategies that some use do not serve others, but when we start we always look for someone model to follow.

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I remind you that trading is the process of buying and selling an asset in a period of time and the trader is the person who performs this activity. I have already told you about these in previous posts but it is always good to remember them in case some of you are new or you had not read my previous posts.

I will talk about the types of traders.

The first and with which many start trading is the "Scalper".

They are traders who make operations that can last seconds, minutes and in some cases up to an hour at most.

The time frames most used by this type of traders are: m5 and m15

Most of those who start trading use these timeframes, I started with this timeframe, for me it was very, very difficult because I had little experience and when I was just beginning to see profits, I already wanted to close the operations for fear of losing them, mostly I It was guided by the indicators, such as the RSI, Stochastic Oscillator, Bollinger bands among others.

This work modality gradually taught me my anxiety to close operations early, to learn to maintain my position and to know how to control my fear when operations go negative.

This option is a great place to start. Of course, this is a simple recommendation on my part, this does not mean that it must necessarily start that way.

The great disadvantage of this modality is that the profits for each operation is very low, and most of the brokers charge Spread is the commission for them, this reduces the profits more.

The second is the "Day Traders".

They are traders who open and close operations on the same day.

The most used time frames are: m30, h1 and h4.

This is the most common type of trader that exists, there are very few operations that extend to a second day, and very rarely those that last 3 days. In particular, I consider myself a Day Trader, I suppose that many have already noticed that almost all my analyzes are in h1, this is like the average temporality, or base temporality to know what type of analysis I should do.

What I like the most about this type of work is that I don't have to spend all day studying the market, I take the time to carry out the analyzes, then I follow up on the price action every half hour but at the same time.

The third is the "Swing Traders"

These operate from days to weeks so that the trend can make all the runs.

The most used time frames are: h4 and d1.

For me, these types of traders are people I admire due to the patience they must have, at least they must have at least 5 years of experience in trading and that surely these people have a very high capital.

These traders work based on macro trends, they review the market on a daily basis but they do not operate every day like the previous types of traders, they can wait days to carry out an operation and also wait up to more than two months to close their open operations. People do not affect psychology or anxiety at all.

For the particular, I am not yet trained or mentally much less economically to be this type of traders, but I hope to be able to prepare myself to be able to exercise it.

The fourth is the "Investors".

They are the ones who can open a trade today and perhaps close it in 10 years or more.

These are the least common traders out there.

These are the millionaires, who work 100% on fundamental analysis, apply it to banks, the economy of power countries, even large companies. These types of traders are not like the previous ones, who use brokers, leverage or anything like that, they work directly with banks to buy their currencies or with companies to buy their shares.

These are the types of traders.

For those who are on this platform, comment with which type you identify or what you would like to be.

I want to be an investor, I'm just starting out, I know I have a long way to go.

Yesterday I was a Scalper, today I am a Day trader, tomorrow a Swing trader and a future Investor.

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