Trading Styles

From Traderpedia

Traders use a wide array of styles in the effort to secure profits. They tend to be a mixing and matching of examples from the categories below.


[edit] Timeframe Styles

Traders often indentify themselves by the time frame in which they operate.

  • Scalping - Very short-term trading with holding periods often measured in minutes.
  • Day Trading - Entering and exiting positions during the course of a single trading session.
  • Swing Trading - Taking positions with intended holding periods of 1-3 days.
  • Position Trading - Intermediate to longer-term trading with holding periods which tend to be days to weeks or weeks to months in length.
  • Arbitrage - Exploiting price inefficiencies between similar markets or instruments.


[edit] Analytic Methodology Styles

Trader styles incorporate the methods they use to analyze the markets can come up with trading decisions.

  • Technical Trading - Using Technical Analysis for entry/exit signals.
  • Fundamental Trading - Applying Fundamental Analysis in making trading decisions
  • Quantitative Trading - Using mathematical and/or statistical methods to trade.
  • Hybrids - Combining two or more of the above.

[edit] Application Styles

There are two primary directions traders go in terms of how they sent about the actual trade decision-making process:

One could also think in terms of either a Trend Trading or Range Trading strategy.

[edit] Markets & Platforms

Traders sometimes declare their style in terms of what they trade, or in what manner. Examples include:

[edit] See also

Trading system terms

[edit] T2W links