The Different Types of Traders

In order to obtain the best results in your operation, you must define what type of trader you would like to be. This will depend on the strategy you want to incorporate into your portfolio and the period of time you are willing to hold a position.

Position Trader

A position trader is a strategist who normally retains his/her financial instruments for an extended period of time, primarily using fundamental analysis for decision making, and hoping to look for undervalued financial assets in order to buy or sell them short, then waiting until the asset price reaches its fundamental value.

Characteristics:

  • Patience (movements can take months to mature)
  • Knowledge of market cycles
  • Ability to withstand severe handicaps
  • Does not use leverage

Swing Trader

A swing trader operates more frequently, holding his/her positions for a couple of weeks or even months.

Characteristics:

  • Has a target price and a stop loss
  • Ability to identify trends through technical tools

Swing Trader

Day Trader

Day traders are strategists who buy and sell their position in the same day. Their strategy consists of shopping at the intraday minimum and selling at the maximum to gain a small percentage yield. They will buy and sell hundreds to thousands of times each day. To successfully perform their operations, day traders mainly need these three features:

  • Fast team to complete transactions
  • Manage an appropriate level of leverage to maximize profits
  • Operate in volatile and high liquidity assets

Day Trader

When it comes to investing, you have absolute freedom in choosing what kind of trader you will be and the ability to merge that to your convenience. It is important to perform your operations with self-analysis to become a better trader every day. Tradeview is an outlet for you to unleash your trading potential and become the trader you want to be.

Jesus Gomez

 

Jesus Gomez
Business Development Manager – Tradeview
jgomez@tvmarkets.com