This is most commonly asked question among all traders, what type of trading style suits to their personality and fits it. In this article, we will try to understand the types of trading style and its meaning so that we can measure what trading style suits your personality.
Four types of trading style to choose from.
Scalper: As its meaning suggest reselling at large for the quick profit, the same thing scalper traders follow in their trading, they buy shares in large quantity and sell them in as quickly as possible in few seconds or in few minutes to grab short-term movement of the stocks. By doing so either they make a huge profit or huge loss depends on their strategy of buying or selling of stocks. This type of trading style is a bit risky because you have to very care full about stock movement.
Intraday Trader: Intraday traders keep eye on the market movement of the day as they have to finish their trades on the same day either in loss or profit. So they start their trading at the beginning of the day and play throughout the day with the movement of the stock they pick. Such traders do not hold their trades for the next day. Either they cut their positions or their broker cut the positions as per the cut off timing for intraday.
Swing Trader: Swing traders are those traders who cannot analyze the market throughout the day and like to hold their trades for a few days to a week or two. Swing traders generally analyze the market at the end of the day and whenever they achieve their target they finish their trades.
Positional Trader: Positional traders are the traders who do lots of technical and fundamental analysis of the market before investing as they hold their trades for several weeks, months or even years. Positional traders never afraid of short-term fall or never get excited about rising they always believe in that patient is always fruitful.
Whatever the trading style is yours does not matter at all, make sure that suits your personality.