Most people assume that trader type determines how the profit obtained when trading. Trader type shows the level. To do this, specify the type of trader it is important that you have a guideline of how much profit and also how high is the risk of loss.
Such statements are merely opinions just because not all traders on the same type have the same amount of income as well. Type a trader it also determined how the Forex trading strategy used.
For more details, you can take the time to get to know more about the 3 types of traders below.
1. Swing Trader
Swing trader or often called the swinger is a type a trader who held his position might be days even months. Not uncommon is also a swing trader holding his position until the annual. This is because they are aiming for a position where they could get lucky a lot.
Time frame which is used usually 1 h only. That is, they are just using the time frame to determine whether they should buy or sell.
One of the advantages of a swing trader is a great advantage. The reason, they wait until the position could provide profit as much as possible. Of course there are consequences. A swing trader would have to provide a larger capital.
A swing trader is reliable will use a small time frame. This small time frame makes them capable of analyzing the movement in detail. For the beginner, Forex traders are advised to use the short time frame is great.
2. Day Trader
As you can see from its name, this is the type of traders who use the capital on a daily basis. However, it does not mean a trader daily this is just open and close trading on the same day. Day traders often wait up to one week. The limit is only one; lest they shut there next week.
Day traders often used by novice Forex traders. By using only a small time frame and the trading time is short, they can meminimalis loss. The loss is likely to occur, of course, is the one thing that is very concerned about the the beginning traders.
In addition to the risk of loss can be minimised, the profit may be obtained is also minimal. Only a small amount of profit they can get. At least is much lower than the swing trader.
Unlike the swing trader, day trader requires only a relatively low capital. Set with only with $ 1,000, you can get a profit every day.
However, if You want to become a day trader, you have to monitor continuously the movement chart. In other words, you must be a full time in front of a laptop, PC, or smartphone You to observe movements so that anytime you have to do something, whether buy or sell, you can do so at a moment's notice.
3. the Scalper
This type of trader Scalper uses a scalping techniques. Beginners in the world of trading is very fond of this technique. Even professional traders were using this technique. This is because they can control the full trading they do. They can determine how much profit they would like to get very easily.