Every merchant is different; No two traders are identical when it comes to markets, options, trading knowledge, income flexibility, etc. With so many options available, where do these merchants start? What type of trader has the highest rewards? Does such a thing exist? Many people sit in front of their monitors every day struggling to find the one that best suits their personality, income, time zone, etc. The list could go on for days.

Identifying what type of trader you are is a tedious process that every trader must go through. I did, and here are a few things I learned along the way that might help make your decision a little easier.

For the convenience of this article, I have delved a bit after doing the necessary research and prior experience. This article will deal with the different options when trading the futures markets. Now these three options are all great ways to trade, one may be more risky than others and one may be more profitable on average than the others, but the purpose of this article is to help different types of traders find their groove and become more comfortable in the negotiation style they want. Now, which trading style do you prefer?

scalping? Changeover day? swing trade?

-Scalping:

* Many trades every day (10-20)

* Low risk per operation

* Low profit per trade

* Low risk/reward ratio

* Goal = go in and out throughout the day to collect small moves within the larger moves

* Graph = 4 ranges

-Day Trader: (best place to start)

* Many trades each day (5-10)

* Low risk per operation

* More profit per trade because we use a BROKER

* Low risk/reward ratio

* Objective = look for intraday movements and try to buy when the market rises and sell when it falls.

* Chart = 4 ranges, 8 ranges, 13 ranges

-Commercial position

* 1-2 operations per day

* More profit per trade because we use a BROKER

* Low risk/reward ratio

* Goal = determine the direction of the day and follow that direction, never stop overnight

* Graph = 13 ranges, 21 ranges

-Swing trader

* 1-5 trades per week, month, quarter

* More profit per trade because we use a BROKER

* Low risk/reward ratio

* Objective = determine the WEEKLY direction and trade in that direction, looking to maintain your trade possibly for months.

* Chart = 34 ranges, 30 minutes, 60 minutes, daily, weekly

So which is better for YOU? Small trading accounts should start with daily trading. Larger trading accounts over $10,000 USD can trade anything. You must also identify the RISK in each trade when deciding which is best for YOU. Are you able to handle a stop loss? Would a 20 tick stop be difficult for you? If so, a position or swing trader MAY not be the best option. Traders who can handle larger losses will be better suited for scalping and swing trading. If you can’t handle losses, stick to tight stops with our easy day trading method called ‘Fast Track’.