Different trader having different trading style, below are some trader type.
-A day trader initiates and closes the position during the day. He does not carry forward his positions. He is risk averse and does not like taking overnight risk.
For example – He would buy 100 shares of TCS at 2212 at 9:15AM and sell it at 2220 at 3:20 PM making a profit of Rs.800/- in this trade. A day trader usually trades 5 to 6 stocks per day.
-A type of a day trader. He usually trades very large quantities of shares and holds the Stock for very less time with an intention to make a small but quick profit.
For example – He would buy 10,000 shares of TCS as 2212 at 9:15 and sell it 2212.1 at 9.16. He ends up making 1000/- profit in this trade. In a typical day, he would have placed many such trades. As you may have noticed a scalp trader is highly risk averse.
-A swing trader holds on to his trade for slightly longer time duration, the duration can run into anywhere between few days to weeks. He is typically more open to taking risks.
For example – He would buy 100 shares of TCS at 2212 on 12th June 2019 and sell it 2214 on 19th June 2019.
**Medium/Log term Trader**
-A trader who holds on to his trade for longer period (more than swing trader holding) i.e. 6 month, 1 Yr., 5 Yr.
Some of the really successful traders the world has seen are – George Soros, Ed Seykota, Paul Tudor, Micheal Steinhardt, Van K Tharp, Stanley Druckenmiller etc
An investor is a person who buys a stock expecting a significant appreciation in the stock. He is willing to wait for his investment to evolve. The typical holding period of investors usually runs into a few years.
Trading strategy depend upon type of trader you are.
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