There are various kinds of traders prevalent in the market. I will just take you through a quick gist of all these traders.
Some traders can be differentiated on the basis of their position in the market.
1.Scalpers – they trade for an extremely short period f time, making profits over the short term price fluctuations. They make profits by making multiple trades, each giving them a small profit share.
2.Day Traders – they aim for short trades and focus on immediate trends rather than long term trends. They basically earn profits on volumes.
3.Swing Traders – these are the traders who hold trades for a medium term, say for a few days. There open positions and capital requirements are way more than the above two types of traders.
4.Position Traders – these are the traders with the highest capital requirements as they hold their positions for longer periods, till for years.
Another set of traders is based on their psychology of trading.
1.Greedy Traders – their sole motive is making money and for that they can risk their entire holdings.
2.Trend Traders – they just ride a trend and make money. These traders would buy high and sell even higher. They do great in the long run.
3.Scared Traders – they are really cautious about making any losses and do they immediately close a position by taking a little profit only, if they think that an opposite price movement awaits.
4.Prophet Traders – their only motive is to predict the market well and then let everybody know about it. They predict prices with the help of charts and their experience.