The four trading styles you ought to choose from

In the financial markets, there are millions of people trading the market thousands take crypto trading as their daily work, whereas some trading is a side hustle business and others take trading as something they can do whenever they need fast money. Well, the truth of the matter is that as a trader or a potential trader who wants to dive into the financial markets like crypto trading, you ought to know the category of trader you are so you can easily be identified when you are asked.

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Having said so, in the financial markets trading is subdivided into four different styles if you are to tell someone who has been in the financial markets for a long that you are a financial, crypto, or forex trader the person will like to know the type of trader that you to work with you. Without further ado, in the financial markets: day, swing, scalper, and position traders are the four types of trading styles (traders) which you have to choose from.

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Day Trading

Are you someone who always trades the financial markets daily or someone who finds joy in trading every day with a big or small amount of capital? Ooh if you are such a type of skillful trader, then it means you are a day trader.

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Simply put day traders are the category of people who trade the financial markets daily for profits. These are people who make a living from trading digital assets, to make a huge amount of profit.

Day traders spend most of their time trading the financial markets as they don't have anything that would distract them from trading, unlike someone who is working and still wants to trade. A day trader is someone who takes trading as a profession and monitors the price movement of an asset regularly before and after opening a trade.

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Scalping Trading

If you a someone whose interest is just to make small profits based on the small movement of price, then you should be called a scalper trader. Scalper traders are like day traders, but not as active as those who are day traders, whereas scalper traders are more interested in financial markets and small profits out of the intraday movement an asset has moved. Scalper traders are people who don't stay long in the market.

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For example, you open BTC long when the price was at $57,745.16, with a stop loss set at; $56,775.16 and take profits set at $59,354.72. Now as a scalper trader who is only interested in taking small profits you then close the trade at the time the price of BTC rises to $58,693.39. Scalper traders believe in taking profits little by little because they believe a "small drop can make a mighty ocean" as they keep taking profits.

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Swing Trading

Are you a trader who likes using a higher timeframe to analyze and trade the financial markets, if you are then it means you are a swing trader. Swing traders are those who focus on using high timeframes such as days, weeks, or months, so as not to be monitoring the market often.

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If swing traders want to open a trade it is usually with a big amount of capital and they are the category of traders that often ignore daily charts. As a swing trader, you must be patient and disciplined in trading, have a good knowledge of risk management, know the best place to set your stop loss, and so on.

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Position Trading

If you are someone who likes taking long positions, then you should be called a position trader. Position traders are those who are more interested in investing than trading regularly.

A position trader can open a trade and allow the trade to be running for even a month or can buy and hold an asset for a longer period.

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Disclaimer

_{This is purely written as educational content to help you identify the type of crypto or forex trader you belong to. Please treat this post as an educational content and not as an investment advice.}

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