In the marketplaces, there are numerous types of traders with different determinations. As a person, you must have heard of diverse kinds of traders centered on their trading technique, like Swing Traders, Day Traders, Momentum Traders, and the likes. But how about classifying traders based on their thinking, their determination, and inspiration? You will see some people trade for fun and excitement, while others will sell only for self-worth. You will see some people love trading while some are just in it only to make money.
Nevertheless, talking about the ultimate game on earth, it is astonishing that many traders have diverse inspirations driving them. In reality, the only correct motivation and the fundamental goal of any trader are to make money. Chances are, we were all more than one of these types at some point in our trading process. But still, we need to focus like a laser on the primary purpose we should be trading, which is to make money, and once we have made it, maintain it!
So, in this article, we will be discussing different types of traders, and at the end, you should be able to know which one you are.
#1. NEW TRADERS
New Trader is the first type of trader we will be discussing. Because they are new, they do not know how the markets work, so their only goal should be to understand how the market works. Therefore, new Traders do well to stay still till the time they are through with their project. Going into trading with the mindset of making money without risk management, a winning method, the right attitude, and a trading plan will sooner or later result in disappointment 100% of the time.
#2. RICH TRADERS
The second type of trader to discuss is the prosperous trader. Their only goal is to constantly make money and develop their capital over the long term. You will never see them ask for tips or advice, they do their assignment, and they trade their way.
They maintain self-confidence and assurance in their methods, not minding if they win or lose.
#3. GREEDY TRADERS
Any trader you see trading too big and risking too much is a greedy trader. Their only aim is to get that easy money, and if not careful, they will end up blowing up their account and losing their money.
#4. TREND TRADERS
Another type of trader is the trend trader. Their own main goal is to follow a trend and make money. Trend traders will purchase high and sell much more elevated; they will short and cover much lower. Trend Traders can get compared to masterminds and fortune tellers in a trending market or the other way it trends. Still, they look like they can't even trade in fluctuating markets. But, in the long stretch, they do well.
#5. PERMA-BULL TRADERS
Perma-Bull Trader is the complete opposite of perma-bear traders. Their preliminary determination is to go long stocks and purchase the high-standard investment in the best store. They don't aspire to go short; their own belief is that the next colossal rally is nearby, and they love to purchase lower and off support levels.
#6. PERMA-BEAR TRADERS
Considering what we've discussed earlier, perma-bear traders only determine to go for short stocks. Their thought every time is that the market is on the edge of a significant crash. They "recognize" the economy is in a mess, and the markets are liable to fall. In a bull market, traders believe prices are too high and will converse abruptly. The reverse is the case in a bear market; they think they will go much lower.
#7. PROPHET TRADERS
We all know what prophets do; they predict and prophesy what is to come. The same thing is in the case of a prophet trader. What they do is accurately predict market movement then bring to the awareness of other traders that they did. They always think they understand the top or the bottom; they love objectives and have confidence that the charts display what will come to pass next. You will never see these traders debate on their trading; all they do is predict prices.
#8. SCARED TRADERS
These traders are always afraid of losing their funds, so their only goal is not to lose their capital. Scared traders will instantly close misplacing trades and as well immediately take profits. They are always worried about trading because they don't have enough understanding of the nature of trading itself or just because they cannot handle the improbability or risk. So, they either need to do their assignment to advance their confidence in trading, but if they have done the work, trading may not be for them.
#9. PAPER TRADERS
These traders love the market and study more than anyone, but they never quite make the fall into actual trading. Instead, they stay in the comfortable and convenient world of paper trading and make it a more leisurely pursuit. As a result, they can't make the evolution into the fundamental markets.
#10. ARROGANT TRADERS
Finally, the last type of trader we would be discussing is the arrogant trader. They are just some kind of proud human beings whose focus is to prove to people that they are right and satisfy their fragile egos. Complacent traders will lie, delete tweets and posts but never acknowledge that they are wrong. When they are wrong, they will not want to make it visible, but they will scream it from the rooftops when right. They want everybody to know!
Having read to this extent, I believe with the above article, you will understand what type of trader you are. Any kind of trader can be successful. However, each trading type is different and typically approaches the market in a different manner. The marketplaces are a sea of chances. So, it is essential to recognize the different types of traders and know which category you fall into because it will help you accomplish your trading goals. I wish you good luck!