What kind of trader are you?

Your trading style?


  • Total voters
    199

atulaw

Active Member
#1
* Scalping - The scalper is an individual who makes dozens or hundreds of trades per day, trying to "scalp" a small profit from each trade by exploiting the bid-ask spread.

* Momentum Trading - Momentum traders look to find stocks that are moving significantly in one direction on high volume and try to jump on board to ride the momentum train to a desired profit.

* Technical Trading - Technical traders are obsessed with charts and graphs, watching lines on stock or index graphs for signs of convergence or divergence that might indicate buy or sell signals.

* Fundamental Trading - Fundamentalists trade companies based on fundamental analysis, which examines things like corporate events such as actual or anticipated earnings reports, stock splits, reorganizations or acquisitions.

* Swing Trading - Swing traders are really fundamental traders who hold their positions longer than a single day. Most fundamentalists are actually swing traders since changes in corporate fundamentals generally require several days or even weeks to produce a price movement sufficient enough for the trader to claim a reasonable profit.



I used to think I am a scalper, but after reading those definitions, I am definitely a momentum trader.
 

atulaw

Active Member
#2
I don't think scalping is possible in Indian markets through retail channel.
 

atulaw

Active Member
#4
The definition!

Scalper: "generates trading profits from stocks that are not moving, make tiny (or teenie) profits from each trade by buying a stock on the bid and then turning around and selling at the ask. Provided that the stock does not move, scalpers can profit all day by making dozens (or hundreds) of trades, buying at the highest price at which they feel comfortable and selling at the lowest price that guarantees sufficient profit while still being attractive to buyers."


How can someone on BSE/NSE trade on a non moving stock, buying and selling between spreads!? Generally the spreads are 0.05.. The brokerage itself will kill a scalper.

Also if you follow a trend in anyway, looking at a chart.. Then you are a momentum trader.


No disrespect.. I was also not clear of the distinction before reading the definitions.



But if you really are a scalper... do tell us something about your trades. I would love to know more about it.
 

anuragmunjal

Well-Known Member
#5
hi..
frankly, dont really know about the defination "generates trading profits from stocks that are not moving" .this kind of implies that when the mkt. is static, then only a scalper would profit. dont think that any free moving mkt would have a scenario like this. I have done scalping fr a few yrs. although now I am looking at slightly longer term trades. I can tell u for sure, the most volatile days were the most profitable days. dead mkts, when there was no movement, almost always resulted in a losing or break even day. I can give u the reason fr this.
when u are scalping, u r not necessarily just filling in the gap between bid and ask.u can scalp the mkt with an upward or downward bias.when a stock is moving, while scalping, u can have a very good risk 2 reward ratio.ie. assuming in a moving mkt ., u buy a stock worth 1000 rs., u may instantly be able 2 sell it at 1004 or 1005 or book a loss by selling it at 999, if the mkt goes against u.so u have a risk 2 reward ratio of 1:4 or 1:5. whereas in a dead mkt u would be barely able 2 manage a risk 2 reward ratio of 1:1, bcos the stock is not going anywhere. u buy at 1000, even if it goes in ur favour. it goes to 1001.5 or 1002 and starts falling, u have no other option but to sell. after factoring in the stt charges, exchange charges, stamp duty and brokerage, it would be very difficult to breakeven in a dead mkt.
this is not somthing that just I have experienced, I have known many scalpers/ jobbers who were much better than me.(few of them best in their line of work ) they all had thier best days when the mkts. had a wild swing and the stocks were really moving.

regards

Anurag
 

SwingKing

Well-Known Member
#6
Adaptation is the key in the stock markets.

At times it is necessary to become a scalper whereas at times it is necessary to become an investor. There are also times when becoming a swing trader or a day trader can be hugely profitable.

Thus, I am a Speculator, who observes the events and spots for opportunities. The kind of opportunities available decides what kind of trader I become.
 
#8
Hi

I consider myself a swing trader :thumb:

Now if your defination of swing trading says I have to use fundamental data, I would just throw out the defination and continue trading the price swings

:)
 
#9
I preffered Technical Trading.The technical trading information is not intended for use as a source of investment,legal or accounting advise.Technical trading is a broader style, and is not even necessarily limited to trading.It is easiest to understand.
 
#10
Scalper

Buy or short good number of shares square them at 0.3.% - 0.5% profit and keep on re-entering to book small profits. :)
I hate the brokerage part sometimes it eats away 80% of profit made.
 

Similar threads