There’s many type of trader in stock market. Do you really know which type are you ? Let’s read
1) The Day Trader
- Looks for multiple daily trades
- Seekss to profit from small market movements
- Not interested in overnight risk
- Aims for 10 to 20 positions a day
- Extremely opportunistic
- Excited by heightened market volatility
2) The Swing Trader
- Focuses on price action and trends
- Looks for definitive trends and reversals in prices
- Ignores breaking news e.g company earnings
- Highlights specific entry and exit points
3) The Technical Trader
- Utilises historical price trends
- Predicts that history normally repeats itself
- Ignore breaking news e.g earning reports, boardroom instability
- Is very mechanical and methodical in approach
4) The Fundamental Trader
- Analyses the true value of an asset
- Looks for overvalued or undervalued prices
- Attentive to economic data, company earnings and research
5) The Long Term Trader
- Adops a buy and hold strategy
- Typically puts money into the markets as opposed to sitting in the bank account earning minimal interest.
- Utilises Spread betting or CFDs as a hedging tool against losses to investment
So which type are you? I’m in swing trader.. Eventhough I’m swing trader but I also look for techical and fundamental too..
It is important before making a decision to buy any stock.
