Day Trader

It used to be that the floor trader held exclusivity to day trading. However, since the arrival of the Internet, the day trading activities is now a free-for-all sort of affair. Now, anyone can join in the fun of speculation.

The daily trader is a highly active currency trader who holds short time positions and can make several trades in a day. They are those traders who try to make a career out of the buying and selling of the stocks in a quick manner, sometimes they can make several dozens of trades in a day and can close their position when they feel like it.

Warning: day trading can be a costly adventure since commissions and the bids/ask spreads can add up when there are too many transactions being worked on at a single time. If the day trader gets overwhelmed because of inexperience, they can lose a lot of money.

Position Trader

The position trader will look for occasional but significant moves that may occur quickly or over a longer time period. The trader patiently waits for the ideal trade to happen, whether it is a minor or a major trend reversal, no matter the sector.

They have to be determined to wait for these potentials to occur by monitoring the patterns on the chart, the technical indicators, the point and figure charts and the news events which unfold through the days, or even hours. If they see any signs of development, be it in hours or minutes, they can immediately act on it.

The position trader is a currency trader who may take a long time to make a move of buying or selling. Sometimes, these position traders may wait up to seven months before they close their positions. They usually enter their position when there is a strong possibility of key reversal where they can gradually buy or hold on their positions. This has a higher probability of success compared to the daily trader.