Many different types of traders exist – from those who are bold to those who are cautious. It is not only your characteristics that determine your trader personality (for example, are you confident daily or are you wary of taking risks regularly?) but also your trading habits: when and how you trade.
To trade successfully, aligning your trading personality with your objectives and personal trading style is essential. Your trading style can negatively impact your trading if it’s incompatible with your risk appetite, time commitment, or motivation.
Decide which trader personality matches your character and trading goals by analyzing your motivating factors, risk tolerance, and schedule.
Get to know the different types of traders here – and how to figure out what type you are!
The Quick and Silent Sniper
Traders who snipe are patient, who wait quietly while waiting for the right opportunity. A perfect set of conditions is at their disposal for entering and exiting. There is no end to the sniper’s waiting.
To complete their trade, the snipers must have their preset conditions met. The bullet will only be shot once but hit exactly where it needs to be.
Traders who trade specific levels typically exhibit this type of trading personality. The best analysts spend considerable time analyzing key levels, support and resistance, supply and demand, and Fibonacci ratios.
Traders wait patiently for the price to reach a level they wish to hit, wait for confirmation, and then snipe a shot in anticipation of a lucrative trade. You can earn money by following this type of trading if you are patient and can wait for all the conditions to align.
During longer rides, the sniper anticipates the price to be high, so he takes the price at the beginning of the rally or drop.
Additionally, they develop more cycles of the rally or drop to take advantage of what they can from the cycle. They intend to have the most massive impact possible by sniping at the perfect time and place.
The Scalper
Traders with this personality type are aggressive. Their trading often occurs at intermediate levels within the rally cycle, which means they try to take advantage of many trades with low-profit expectations.
This type of trade usually has a risk-reward ratio of about 1 to 1. Risk varies by the amount of money a scalper is willing to risk. The short movements generally lead to a higher success rate, giving them an edge.
Day traders typically have this personality type. There’s a lot of aggression, action, and focus required. You will achieve your trading target with just one trading session while ending the day flat. With a little help from the market, it is possible to set daily goals that are within reach.
The Artillery Barrager
These guys deserve the biggest and loudest guns. The traders here take a trial and error approach and keep putting everything out there until they get it right. Once they have found a functional level, they try multiple entries around it until it works.
Entering and exiting the market, taking small losses, and taking a lot of trades until one big one pays off all losses. Artillery works when you don’t need a precise time or location. The blast covers a wide area, so if something hits, it hits hard, making up for any misses.
Based on the chart, this appears to be an entry and an exit around a key level. The winners and losers are many and varied. A bonanza trade occurs when the trend returns after a long hiatus.
Bottom line
Forex traders should understand which of these four personalities suits their personality and daily routine to achieve optimal results. An extensive amount of self-reflection is required to determine one’s trader personality. You will have difficulty succeeding when your trading style does not fit your personality. There can be a temptation to jump in and start trading immediately.
