Type of Traders

There is a big difference between an Investor and an intra-day Trader. Investor always seek for the right company and the right opportunity to invest on . Investors gives times and waits patiently for return of investment. On the contrary, Traders search opportunity to grab the money out of the market everyday.

To do the same, Traders only look for the price of the stock, Price movement , volatility and of course liquidity. Mostly there are three kinds of traders, Swing Trader, intra-day trader and Scalper.

Swing traders use mainly daily technical charts, indicators and focuses on the news of a particular stocks. Average trading duration of a swing trading is 3 weeks to 2 months. The ROI of a Swing Trade is 10-20% on average of a trade.

Intraday traders use technical charts based on 5 min or 15 minutes and check the support and resistance level of any stocks, accordingly take the trade. The target of any intraday traders varies from 1% to 3 % a day. The Average trading duration of an Intraday trading is 2 -4 hours.

Scalpers uses scalping Technics, a small price movement with a Hugh volume of stocks. The average duration of a scalping is 1-5 minutes.

One fundamental objective of the three kinds of traders is common , try to grab the money from Stock market to their pocket. They do not give much time to sit on a particular stocks for years like investors.

There are two kinds of people in stock markets, depositors and with-drawers. If you want to become a successful trader, always remember that you are in stock market to withdraw money most of the time. You should have a trading system and discipline to achieve it.

On the other hand the reality is almost 90% of the trades try to do so and fail and eventually faces a Hugh loss. Remember that On your way to become a successful trader the only obstacle is your emotion. During the trading time there will be a war within you between fear of loosing and Greed of wining more money. Your Trading system is the weapon to win the war.

Successful trades have control on their emotions. If you really want to become a successful trader, you have to spend lot of time in the market, so that market can not surprise you and you can have control over your emotion.

Comments

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