What kind of trader am I?

A non-exhaustive list of popular trading strategies.

Day Trader (scalper)

Scalpers generally try and use the leverage of large trading volumes and small price movements to profitably trade throughout the course of a trading day.

Day traders (scalpers) usually go home flat (ie without a position in the market) at market close.

Trend following

Trend folowing is going long or short a product based on the strength of pricing trends utilizing technical analysis and indicators.

Moment is based on three key factors:

  • volume
  • volatility
  • time frame

Spread Trading

Trading two products and hoping to profit from the price movement of the products (as they relate to each other) is the essence of spread trading.

There are three types of spread trades:

  • Intramarket (calendar) spreads
  • Intermarket spreads
  • Commodity product spreads

Statistical Arbitrage Trading

Stat arb looks to profit from price differences. Stat arb is focused on profiting from price changes in futures contracts, whether that is a change in price of the future versus the spot price, or another futures contract, depends on the specific strategy.

Swing Trading

Swing trading attempts to capture price movements over a period of time greater than a trading day.