There are essentially 2 categories of trader analysis. In order to understand the different trader types and ways to read the market, it’s important to understand what type of analysis is used for each type of trader. On top of this, it’s important to know what types of traders are primarily trading each type of asset class.
Stocks/Options
- Have both technical and fundamental aspects that affect price movement.
- Need to understand – Sector risk, market risk, company risk, price risk & liquidity risk
Futures/Forex
- Have more of a technical weighting that affects price movement.
- Need to understand – Market risk, price risk & liquidity risk
Day traders are more focused on the technical side of trading as positions are liquidated prior to market close and most often are not affected by fundamental market catalysts during ETH.
Watch this week’s episode of Money Mondays where Sean dives deep into this subject!
