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Module 1 – Lesson 13 – Traders and their characteristics

1. types of identifiable traders

Trend Follower
They have very long-time horizons, they
enter the market trying to guess very What is a trader?
important movements of the underlying (not
the individual daily fluctuations), which A trader is any person who operates on the
obviously don’t occur every day, and for this markets, for working, for passion or for living.
reason, they range between many markets
and many underlying’s, in order to increase We can distinguish the types of Forex traders in
the number of investment opportunities. many ways. Many of the distinctions we will see
The average duration of their operation are determined by the character of the trader, as
could be weeks, months, even years in some well as the course of study and interests that led
cases. the person to becoming one and the amount of
underlying’s on which they operate
Swing Trader
For swing trading is meant the type of There are traders who operate in many markets,
trading that seeks to gain from those dealing with many underlying’s. Usually these
decided and sudden market movements, traders, work with a long-time horizon, in which
that can last one or several days, and that are the daily movements of the individual underlying
called precisely swing. Usually the will not affect particularly a singular transaction.
operations last more than one day but less
than a week, but there can be exceptions of It’s certainly very relaxed trading, and the traders
course. has time to range between various markets and
underlying’s, and calmly decide when
Day traders overweighting his investments and when
These are traders who try to gain from the underweighting them. Usually this type of trader
daily price movements of the underlying has almost the connotation of investor.
they follow regularly. Their operations are
almost always closed by the end of the day, Other traders instead prefer a more exclusive
rarely the next day. Given the time horizon operation, choosing just a few markets, many
of their operations, they usually prefer more times just one, and w with few underlying’s, very
underlying’s, but remaining confined within often only one. This makes them more like
a single general market, not to dissipate their speculators, who invest and earn on every
energies; for example, two, three or four pair slightest price deviation of that single underlying.
of the Forex market.

A sub-category of the day traders is the
Scalper. He’s definitely the most speculative
and frantic figure of the market. These are traders who operate with very consistent leverage and very short
timescales, in the order of minutes or seconds per transaction. Their goal is to close in profit on a lot of
transactions with small gains during the day

2. main categories of traders

Fundamental analysis type
Traders who rely on fundamental analysis. They are usually the more long-term investors, who dedicate
themselves to the study of fundamental, theoretic and global nature information. Depending on the
underlying asset, the relevant information may be different: We range from single company news, to forecasts

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