Types of Traders: Scalpers, Day Traders, Swing Traders & Position Trading
Types of Traders
There are different types of traders. The type of a trader one is depends on the amount of time which they hold their trade transactions.
The different types of cfd traders also use different chart timeframes to place their cfds trades.
The different types of traders are:
- Scalpers
- Day traders
- Swing traders
- Position CFD traders
Each type of trader is explained below and as a beginner cfd trader you can decide which type of trader you want to be based on your trading personality and the chart timeframe that you would want to be trading with.
Scalping CFD
The CFD traders who are scalpers hold on to their trades for only a few minutes. With the objective of making a small amount of pips in profit, 5 to 10 to 20 pips.
Scalpers are the type of traders that make many cfd transactions in one day and participate in cfd trading during the busiest market hours of the market. A scalper cfd trader can open anywhere between 30 to 50 cfds trades per day.
Scalpers are CFD traders that can make quick decisions.
Scalpers use 1 minute cfd charts to put their cfd orders. They use 5 minutes CFD Trading chart timeframe to determine the cfd trend, if the cfd trend is going up or down and to decide their entry and exit.
Scalper 5 minutes cfd time frame cfd strategy
A Scalper using 1 minute cfd chart timeframe wants to go long, checks 5 minute cfd chart, looks like the cfd examples shown below, since it displays the cfd trend is going up, the scalper will then decide it's okay to buy the cfd.
Types of Traders - CFD Trading Scalpers - Scalping CFDs - Scalper Trader
Day Trading CFD
CFD Day Trader - This type of trader holds on to their trades for a few hours but not more than a day. With the aim to make quite a number of pips in profit: 30 to 70 pips.
The cfd day trader makes 2 or 5 cfd transactions in one day, participating during the busiest times of the cfd market & they do not hold their trade orders overnight.
These CFD traders use the 15 minutes CFD Trading charts to put their cfd orders. They use 1 hour cfd chart to determine the cfd market trend, if it going up or down and to decide their entry & exit.
CFD Day Trader 1 Hour time frame cfd strategy
A CFD day trader using 15 min cfd chart wants to go long, checks 1 hour cfd chart timeframe, it looks like the cfd examples shown below, since it displays the cfd market cfd trend is going up, the cfd day trader will then decide it's okay to buy the cfd.
Types of Market Traders - CFD Day Traders - Day Trading - Types of Traders
CFDs Swing Trading
CFD Swing Traders - This type of cfd trader holds on to their trades for few days to a week - With the objective of making a large number of pips in profit, 100 to 400 pips.
This type of trader makes an average of 2 to 5 cfd transactions in one week, holding onto their trades overnight. Swing cfd method requires traders who are patient.
This type of cfd trader uses the 1 hour CFD Trading charts to put their cfd orders. Swing traders use the 4 hour cfd chart to determine the CFD trend, if it is going up or down and to decide their entry and exit.
CFD Swing Trader 4 Hour chart timeframe cfd strategy
A cfd swing trader using 1 hour cfd candle-sticks charts wants to go short, checks 4 hour cfd candlesticks chart, it looks like the cfd examples shown below, since it displays the cfd trend is going down, the swing cfd trader will then decide it's okay to Sell/Go Short the cfd.
Types of Traders - Swing Traders - Swing CFDs - Swing Traders
Position CFD
Position CFD Traders - This type of cfd trader holds on to their cfd transaction for weeks or months. With the objective of making a large number of pips, 300 to 1000 pips.
Position CFD Traders place an average of 2 to 5 orders in a year, position cfd method requires those who are patient, experienced and have huge account balances that can withstand huge draw-downs.
Position cfd traders use 1 day or weekly cfd charts to put their cfd orders. They use weekly cfd chart to determine the cfd trend, if it going up or down and to decide their entry and exit.
CFD Position Trader Weekly cfd chart timeframe cfd strategy
Position cfd trader using the daily cfd candle-sticks charts wants to go short, checks weekly cfd chart timeframe, it looks like the cfd example shown below, since weekly cfd chart timeframe shows the cfd trend is going down, the position cfd trader will then decide it is okay to sell - Go short.
Types of Traders - Position CFD Traders - Position CFDs - Position CFD Traders
Types of Traders
The most popular type of trader or the best trader type is the day trader & scalper cfd trader depending on the method of cfd of each trader, but these two cfd methods are the most widely chosen cfd methods. Scalping cfd and requires those that can make quick decisions while cfd day trading is for those who want their trades to run for longer and have more time when making cfd decisions. When starting it is best to try cfd scalping or cfd day trading. This cfd methods are the best because you do not leave cfd orders open for too long. At the same time you do not leave trades open overnight and you can trade when you have time to watch the cfd market movements. In CFD Trading it is best keep orders open for as long as the cfd trend setup is in your direction and exit immediately once the cfd trend direction starts to reverse.
When it comes to the question about which type of cfd style is used by the best traders or by the top CFD traders the two cfd methods above are the most commonly used cfd methods. CFD traders can also automate these scalping or day trading styles by implementing their cfd strategies using automated robots.
For cfd swing traders, leaving trade transactions too long can also take up your profit and this cfd method also requires a lot of skills so it is best to stick to the short term cfd methods for most beginner traders.
Position cfd is not good as it requires a huge account balance & sometime it can result to huge draw-downs.
For cfd swing trading & position cfd methods, leaving a trade transaction open for too long, may mean these trades can reverse and move against you with a lot of pip movements and can even wipe your account, for this reason swing and position cfd methods are not very popular. It is best to stick to cfd scalping and cfd day trading so as to better manage the funds in your cfds trading account.
It is not recommended for the CFD trader who is a beginner to leave orders open overnight, it is best to always close open cfd orders at the end of the day.
CFD Trading News Traders - Types of Traders - CFD Trading News Trading - this cfd news trader places orders during economic news release time, either guessing the news will be positive/negative or placing pending cfd orders above and below the price. CFD Trading News trading technique is risky as volatility is massive, whilst liquidity may be non-existent. You may not get filled or, worse, your stop loss might not be honored! CFD Trading News Trading technique can be very profitable for some cfd traders but requires some skills.
CFD Robot Traders - Types of Traders - Automated Traders - the trading robot trader - automated cfd trader is the type of cfd trader that uses automated cfd programs known as cfds trading robots - How to Trade CFD with Automated EA Robots - Expert Advisors - Robots to trade the online market. This automated cfd trader will install an Automated Robot on their platform and the automated robot will then open & close trades on behalf of the trader based on the trading strategy which has been used to program this automated robot. If you are new to automated cfds trading and would like to find a trader using automated trading robots to help you come up with an automated robot, then you can find out more about automated trading on the CFD Expert Advisors Article - MQL5 CFD EA Robots Forum.
What is a Trading Plan? - Writing a Trading Plan Example
Alternatives: EA Automated Robots or Copier Trading Signals
