A person's personal character is definitely different from one another. The same goes for a trader when trading. In the world of forex trading, there are several types of traders who have different trading styles. 

Getting to know the types of traders in forex trading

In the world of forex trading, there are generally four types of traders, namely scalper traders, day traders, position traders, and swing traders. These types of traders are differentiated based on their risk profile, trading frequency, and target position when entering the market. Well, because the trading frequency and position target are not the same, they generally use different timeframes, risk management, and trading systems. This difference is usually caused by the diverse character and condition of traders, because it could be a student who tends to have more time, or a full-time worker who can't monitor prices often, or a freelance worker, and so on. Because of this, traders have different strategies. The more often a forex trader makes transactions, the greater the risk opportunities and more trained trading skills are needed. The trading style of each type of trader actually has the same goal, which is to obtain consistent profits in the simplest and most convenient way for traders to do. Take a look at the following four types of traders and which one suits you best? Before entering the discussion of scalper traders, traders can fill out the Trader Assessment if they want to consult trading with GIC.

1. Scalper trader

Scalper trader is a term for traders who use scalping techniques. The trading frequency of a scalper is much more frequent than other traders, because traders only hold positions in a very short time span, i.e. seconds to minutes. Transactions are carried out briefly with high frequency and small profit targets. Within 1 hour, traders can open and close positions repeatedly. This strategy can be done if the trader has a lot of flexible time although the risk tends to be higher as the chances of a whipsaw also increase. What is a whipsaw? A whipsaw is when the price moves suddenly in the opposite direction and is unpredictable. In addition, transaction commissions are also more wasteful. The profit target on this strategy is usually 1-10 pips per transaction. This type of trader is generally based on a 1-5 minute chart. Scalping strategies are good when the American and European markets open, i.e. when price fluctuations occur. Here are some things that scalper traders need to pay attention to.
  • Besaran spread
Choose currency pairs with close spreads. Avoid pairs with large spreads due to the greater risk ratio than reward. Examples of currency pairs with small spreads are EUR/USD, USD/JPY, GBP/USD. In addition, this currency has high liquidity.
  • Leverage
Because scalpers' strategies have a high trading frequency with a small profit target in a short time, the leverage used is high so that it can generate larger profits in percentage.

2. Day trader

A day trader is a trader who makes trading transactions in a span of one day. Trading transactions are completed before the closing of both losses and profits. The time required for a single transaction ranges from minutes to hours. Traders feel calmer if they pass the closing of the transaction without holding a position so as to avoid news surprises that can disrupt the price.
 Survey Pengguna GIC 
The trader's profit day target is usually 20-40 pips, depending on the currency pair being bought. The choice of currency pairs to be traded is the same as scalpers, the currency pairs must be volatile in a short period of time.  Meanwhile, to observe price movements, 15-minute and 30-minute charts are used. Unlike scalpers who avoid the news, day traders look forward to economic news that can move the market further. Day traders are often also referred to as day traders.

3. Swing trader

A swing trader is a trader who when trading holds a position starting from a few days but less than a week. Traders who work full-time or who have limited trading time are suitable for swing trading. On volatile currency pairs, swing traders can set a profit target of 50-150 pips or more. The chart used as a transaction guide uses 1 hour and 4 hours. Strategically, swing traders tend to be more conservative than scalpers and day traders. Before taking a step, swing traders review several parameters for confirmation. So that they are not swayed by price movements in the 1-day range. They focus more on the medium-term trend. Since the profit target is larger, swing traders are not affected by currency volatility and wide spreads. Here are some of the advantages of being a swing trader:
  •  Lower risk
Swing traders have a rare trading frequency compared to scalpers and day traders. Opportunistically, it also avoids human error and avoids momentary price movements that usually outwit day traders.
  • Save time
This type of trader strategy can be applied to busy traders who have little time to trade so that traders no longer need to monitor price movements continuously. Opening the chart can certainly interfere with work concentration and be inefficient. This advantage allows swing traders to trade while remaining productive in their field.  In addition, watching too many charts can actually 'tempt' traders to get entangled in unprofitable transactions.  Generally, swing trading is done by individuals who do not have a formal economic education background. With limited time, he also does not have time to monitor economic news, conduct fundamental analysis, and others. So swing traders rely more on and use technical analysis as a guideline for trading. Technical analysis is believed to be effective in reflecting various market conditions that are happening through statistical parameters.

4. Position trader

Position trader a type of trader who trades by holding positions ranging from a few weeks to a few months. In terms of time period, a trader's position is the longest compared to other types of traders. Their trading style is the opposite of scalpers who want to be fast. If swing traders are guided by technical analysis, they are guided by fundamental analysis with the parameters of economic data. Even if it uses a little technical analysis, position traders use daily, weekly and even monthly time periods. 

Target profit per transaksinya bisa mencapai 500 pips. Beberapa keunggulan strategi ini adalah hemat waktu sehingga bisa sambil tetap fokus beraktivitas tanpa memantau harga secara terus menerus, karena jarang trading tentunya biaya transaksi juga sangat minim bahkan bisa berpeluang memperoleh bunga swap. Swap adalah bunga yang diberikan atas pinjaman yang diberikan trader terhadap pair mata uang yang sedang dimilikinya. Hal ini dikenal juga dengan istilah carry trade.

Still having trouble understanding the basic techniques of forex trading? 

Don't worry, if you find it difficult to understand the learning material or basic trading techniques, it is not because the forex market cannot be understood. To make it easier for you to become an expert trader, join the trader community on Telegram GIC Forex Academy which will provide information and trading education that is often held by GIC.  You can also join the trader community on GICtrade Telegram to ask fellow traders directly about their trading experience. Also follow GIC Instagram to get webinar information and various attractive prizes. In addition, on YouTube GIC, traders can also learn to trade for free! What are you waiting for? Get more features that fully support you to start investing and trading forex through GIC. Make transactions simpler, safer, and more profitable. Start by creating a demo account.