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Chapter 9

Which Type Of Trader You Are ?


Different Stock traders have different aims while trading. Some look for instant profits while some are only interested in using shares as their tool for a long-term investment.


There are three different types of traders. They are Position traders, Swing traders, and Day Traders.


Position Trader


The position stock trader - This type of trader is the most common type of trader. Many investors come under this category only because this type traders buy a share and keep them for a very long time. It can keep the shares for many years in the hope that shares will make profits for them.

Institutional investors also come under this trading Other than individual investors who keep stocks and forget that they even own the stocks. Some more are Mutual funds and investment banks join because they think they will make them high profits over a long time.

The position trader heavily relies on basic analysis to make decisions to buy or sell a share. They look at the financial strength of any company rather than using analysis based on technology. They also don’t show interest in any short-term changes in the values of a share.


Swing Traders


Swing traders are also called as mid term traders. Swing traders normally keep a trading position for weeks and months. The swing trader is motivated by making big earnings by holding big positions in a share for a long time.

A swing trader depends on basic analysis as well as technical analysis to make their trading decisions.

Day Trader

This new type of is coming up strongly to the liquidity of all stock markets. Because of recent breakthroughs made by the technology, that made easy stock trading, the day trader is slowly coming up as to be very important.

A day trader has only one interest that to make short-term earnings. He do not keep any share for more than a day and uses the stock market not as investment but as a source of income. Day traders basically depend on technical analysis to make their trading decisions.