It’s important in this industry to assess your trading type or style. This is so you can figure out what works best for you, as an individual. You may be asking yourself – What do I mean by “type” and “style”?
A trader’s type relates to their time horizon, goals, commitment level, and availability to trade.
A trader’s style relates to their trading strategy and approach to making money.
There are three main types of traders:
- The Scalper – This is a “fast” trader. They are taking several different trades throughout the day and are in and out of trades very quickly. They focus on making more trades with smaller profit margins and are often available to sit in front of the screen all day to accomplish this.
- Day Trader – These traders focus on trends in bull & bear markets and trade on higher time frames than the “scalper” type. They are still trading throughout the day, but are less active in their number of trades and are focused on higher profit margins.
- Swing & Position – These traders don’t have the ability to sit in front a screen all day, either because of scheduling conflicts or a full-time job. They still want to trade, but with better tools & resources that allow them the flexibility to maintain their day to day schedule.
Our core strategy is universal and can be traded by all 3 trader types. This is done by simply changing the timeframes they trade on.
A trader’s style refers to the strategy the employ in working with live markets. There are many different styles, although the five most common are:
- Trend – Trading with the market’s directional bias.
- Reversal – Trading when markets reverse direction.
- Counter-Trend – Trading against the market’s trend direction.
- Breakout – Taking a trade position within a trend’s early stages.
- Momentum – Trading with strong upward or downward trends.
Our core strategy at NeuroStreet focuses on a combination of 3 styles: Trend, Momentum, and Reversal. This allows our strategy to remain effective in changing and dynamic markets. Every day the market will present different scenarios, and, by utilizing a combination of styles, you will be better prepared to react to these scenarios and remain consistent in changing conditions. Our overall “style” is directional at NeuroStreet we trade with the trends and momentums in the market. Even our reversals styles are still utilizing the direction of the flow of capital and accounting for the trend & momentum of the daily markets.
This may be a lot to take in or maybe you’re used to a different style or strategy. The NeuroStreet style will be outlined and featured in greater detail in future blog articles, so you can see if this will be right for you.