There are many different types of traders and one of the first things you must decide is what style suits you. There can be multiple factors that can influence this such as the amount of free time a trader has.
Different types of traders
Scalping – This involves going in and out of many trades every day, trying to make very small but consistent profits on each one. This is mainly done by exploiting the bid-ask spread.
Momentum trading – This involves traders looking for currencies, stocks or indexes that are moving significantly in one direction on high volume. They then try to jump on the back and ride the momentum into profit.
Technical trading – This is the type of trader who will use the type of trading strategies on this website where you are looking for chart patterns. It can also include looking for convergences and divergences which can help to pick entry and exit points for trades. For more information, see here.
Fundamental trading – This involves looking at broader global data such as GDP numbers and other economic data releases. For stocks, this can involve looking through company reports, earning and acquisitions.
Swing trading – These traders will normally use the same analysis tools as a fundamental trader but hold their positions for a day up to a week.
Most new traders will try most of these styles until they find one that suits their trading but eventually you will want to settle on just one strategy. This will help to match your investing knowledge and experience with the amount of time you have for further research, education and practice.