Here we from Scalper will explain the trading styles you need to know. What distinguishes between trading styles is trading time, entry time and in some cases, trading frequency. There are no fixed timeframe rules that a trader will use.
EOD (End of Day)
This is a popular trading style for anyone who works full time. They analyze the market every day or every week and place pending orders to capture price movements – they don’t monitor the screen when their orders are executed.
If you have a busy lifestyle, this method is for you because it requires not much time to monitor the screen or manage to trade.
Fundamental (Macro Trading)
Use fundamental information and / or financial models to measure the strengths or weaknesses of stocks, currencies, markets, or countries to anticipate future prices. Sources of information will vary because they are also affected by a company’s international news, as well as macro information.
An intraday trader opens and closes trades within the same day. Swing trading chart of 1HR (hours) can be included as Day Trading, and day-trading is more technical than fundamental.
There are many types of intraday trading summarized below, including Scalping; News Trading; Swing Trading; Trading trends.
News Traders specialize in ‘Red News’ events and trade during or around important news announcements. Extreme volatility can arise if a surprise figure (which is not expected by the market) makes an opportunity to make more profit in a short period. However, long-term movements can also occur after important events that are of interest to Macro Traders for long-term trading trends, but News Trading tends to be for the short-term.
The type of trader who holds long-term positions (from weeks to months, to years). For long-term traders are not affected by short-term fluctuations. It is because they believe that long-term investments will close it.
Position Traders tend to use a lot of fundamental information because of the length of time they hold a trading position, and also they use technology. Position Traders and Swing Traders often arrange Pending Orders to place positions, because they do not need to monitor their trades when entering or leaving.