You buy and sell stocks — and that makes you a stock investor. But specifically, which type of stock trader or investor are you?
Did you know that your personality as a stock trader is determined by: (1) the kind of stocks you buy; (2) the time frame when you trade; and (3) the period or duration you buy and sell stocks?
There are five (5) types of stock traders and investors. Read below to find out the traits and characteristics or each type and choose which one best describes you!
Once you’ve determined the type of trader you are, vote in the poll below so we’ll know how many Filipinos fall under each stock trader category.
5 Types of Stock Traders and Investors
1. Scalper
- Holds stocks for mere seconds to minutes
- Buys thousands or hundred of thousands of shares, but only makes hundreds of pesos per successful trade
- Looks for the difference between the bid and ask price in order to make a profit
- Could trade more than 100 times a day
2. Day Trader
- Holds stocks for minutes to hours
- Uses intra-day and daily charts and real-time data to make buying decisions
- Looking for large intra-day moves to secure thousands of pesos of profit
- Could trade more than 10 times a day
3. Swing Trader
- Holds stocks for days to weeks
- Could trade more than 10 times a week
- Uses daily chart and real-time or end-of-day data to make buying decisions
- Looks for large movements over a short period of time (within days or weeks) to book a profit
4. Position Trader
- Holds stocks for weeks to months
- Could trade more than 10 times a month
- Uses daily or weekly charts, and generally end-of-day data, to make buying decisions
- Looks for profit in large price movements over a long period of time (usually weeks or months)
5. Investor
- Holds stocks for months to years
- Uses daily or weekly charts to make buying decisions, although many investors may not use charts at all
- Buys or sells only a few stocks (less than 10) per year
- Looks for price movements over a long period of time (months to years) to secure a profit
- Spends some time researching companies prior to making any buy or sell decisions
- Likely sells when the fundamentals of a stock change
Which stock trader type are you? Vote and tell us in the poll below!
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