What is your Profile? Discover the Types of Traders and How to Trade According to your Style

If you have just started trading, one of the first decisions is to identify which types of traders align with your availability of time, capital, and nerves. There is no single approach that works for everyone, and forcing yourself into a style that is not yours is the perfect recipe for losing money. Let’s see what the main types of traders are and how each operates.

Scalpers: Centavo Hunters

Let’s start with the most agile. Scalpers work on extremely short timeframes—seconds or minutes—seeking to capture small price movements again and again throughout the day.

• What you need: Steel discipline, a low-latency platform (execution speed), and an impeccable risk plan. A small mistake multiplies quickly.
• Methods they use:
  • Order flow analysis to anticipate movements
  • Automation with algorithms executing in milliseconds
• The challenge: Requires constant concentration and moderate initial capital. Not for those who work full-time or have obligations that distract them.

Day Traders: The Closed Day

Day traders live by the mantra “open and close within the same day.” They liquidate all their positions before the market closes to avoid risks from overnight events.

• Favorite markets: Stocks and Forex are their main grounds, thanks to abundant liquidity.
• Proven techniques:
  • Range trading: Operating between established support and resistance levels
  • High-frequency strategies: Algorithms executing dozens of trades in seconds
• Profile: Needs available time during market hours and the temperament to make quick decisions.

Swing Traders: The Short-Term Balance

Swing traders are the middle ground: they operate in the short and medium term, keeping positions open for days or weeks to capture larger oscillations.

• Hybrid approach: They combine technical analysis (chart patterns) with fundamental (news, corporate reports).
• Characteristic strategies:
  • Follow identified trends and trade in their direction
  • Detect when an asset deviates from its historical average and anticipate its return
• Advantage: Less time required than day trading, but more flexibility than long-term positions.

Position Traders: Long-Term Players

These are patient investors. They buy assets and hold them for months or years, ignoring daily market noise.

• Philosophy: They are guided by deep macroeconomic trends and thorough analysis before committing capital.
• Strategies employed:
  • Seek undervalued assets with potential for sustained appreciation
  • Benefit from long economic cycles and global structural changes
• Ideal profile: Calm temperament, long-term capital, and the ability to ignore volatility.

How to Choose Your Trading Style?

The key is honesty with yourself. Ask:

• How many hours can I dedicate daily? Day traders and scalpers need constant presence; swing traders and position traders do not.
• What is my stress tolerance? Rapid changes terrify some; others enjoy them.
• How much initial capital do I have? Scalping requires less absolute volume; position trading requires patience and significant capital.

Each trader type faces its own challenges. The important thing is to build a strategy that fits your reality, not to fight against your nature by operating styles that cause you anxiety or require dedication you cannot give. Effective trading is the one you practice consistently, with discipline, and within the limits you set.

Have you already identified which of these trader types resonates with you? The first step toward profitability is knowing your own style.