Conclusion
  1. Stock Traders’ vs. Stock Investors' Roles in the Marketplace
  2. Decision-Making Methods: Informed, Uninformed, Intuitive
  3. Informed Traders: Fundamental Traders, Technical Traders
  4. Swing Traders
  5. Buy and Hold Traders
  6. Value Traders
  7. Trend Traders
  8. KISS Traders
  9. Momentum Traders
  10. Range-bound Traders - Break-out Traders - Channel Traders
  11. Options Traders
  12. Options Seller Traders
  13. Day Traders
  14. Pattern Day Traders
  15. Intra-Day Traders
  16. Intra-Day Scalp Traders
  17. Introduction to Stock Trader Types
  18. Contrarian Traders
  19. Active and Passive Traders
  20. Futures Traders
  21. Forex Traders
  22. Online Stock Traders
  23. Pivot Traders
  24. News Traders
  25. Noise Traders
  26. Sentiment-Oriented Technical Traders
  27. Intuitive Traders
  28. Price Action Traders
  29. Price Traders
  30. Detrimental Traders
  31. Unsuccessful Types of Stock Traders
  32. Conclusion

Conclusion

There are a great many different types of traders, and within each category there are sub-categories, and sub-sub-categories, etc. Traders will adopt their own style of strategy. It is not a "one size fits all" market. Anyone looking to join the list of stock market traders and make money in the short or long term should decide which strategy or strategies work best for them.

Traits of top traders/investors

It is important to understand, and if possible, emulate the qualities that most top traders/investors have, to profit from the stock market! Many of these qualities can be developed if there is a willingness to succeed. With a commitment to improvement in one’s trading skills, and adhering to certain business stratagems, profiting from the stock market, in whichever form a trader feels comfortable, is feasible. Here are some traits of successful traders that may be of help:

  1. Personal responsibility - Probably the most important trait that all top traders have (or top people in any field) is the ability to assume total responsibility for what happens to them. And for top traders and investors, this means that they assume total accountability for their investments results.

 

  1. Commitment - Becoming a successful investor/trader requires hard work. Traders must get to know themselves intimately because they are the source of their trading performance. They must develop a business plan to guide their trading. They must develop and test three or four strategies that fit within the big picture (as they see it) and then become part of their business plan. They must do their homework constantly. They must set routines and follow certain disciplines during the day on a constant basis. And all of this requires a lot of time and energy - and it is only the people who are really committed who will put in the work necessary to become successful.

 

  1. Control of mental state - There are many tasks to be adhered to when trading, but the key to following those tasks is control of one's mental state.

    Each task requires a particular mental state in order to execute it properly and a trader must have the skill to step into that state and perform the task. There are many tasks required, some of which are - daily self-analysis, daily mental rehearsal, developing a low-risk idea, following the lead, taking action, monitoring, terminating bad positions, taking profits, daily debriefing, periodic review, etc.

For example - One of the tasks of trading is the action step of terminating or taking profits. The mental state required is 100% commitment to action. There is no thinking involved -- just 100% action. A trader should already know what to do when they get this signal because they’ve already developed a system that works. Thus, their job is simply to act. Think about when the tiger starts to leap on the antelope. They don’t suddenly think to themselves, “Is this a good idea?” If they did that, they’d probably miss the antelope and break their back. No, their mental state is 100% commitment. Well, each essential task of trading requires a particular mental state and traders must have the ability to step into that state.

  1. Top-down discipline - In developing this sort of discipline, a trader must go through a series of steps in regard to their expectations in life, and particularly what they wish to achieve from their trading, the action needed to achieve these goals, until the final stage of reality where success is achieved.

The net result of following these steps is that they develop a top-down discipline that helps them develop commitment and achieve almost anything they set their mind to achieving.

In summation:

No matter the style of a stock trader, and the category it falls into, or which best matches their stock buying interests, all types carry risks and potential to the trader’s financial well-being.

There is a place for all traders and investors, and while there are winners and losers in the market, the important thing is for traders to pick a comfortable place and not to let anyone force them out of their comfort zone, particularly if they are doing well.


  1. Stock Traders’ vs. Stock Investors' Roles in the Marketplace
  2. Decision-Making Methods: Informed, Uninformed, Intuitive
  3. Informed Traders: Fundamental Traders, Technical Traders
  4. Swing Traders
  5. Buy and Hold Traders
  6. Value Traders
  7. Trend Traders
  8. KISS Traders
  9. Momentum Traders
  10. Range-bound Traders - Break-out Traders - Channel Traders
  11. Options Traders
  12. Options Seller Traders
  13. Day Traders
  14. Pattern Day Traders
  15. Intra-Day Traders
  16. Intra-Day Scalp Traders
  17. Introduction to Stock Trader Types
  18. Contrarian Traders
  19. Active and Passive Traders
  20. Futures Traders
  21. Forex Traders
  22. Online Stock Traders
  23. Pivot Traders
  24. News Traders
  25. Noise Traders
  26. Sentiment-Oriented Technical Traders
  27. Intuitive Traders
  28. Price Action Traders
  29. Price Traders
  30. Detrimental Traders
  31. Unsuccessful Types of Stock Traders
  32. Conclusion
RELATED TERMS
  1. Swing Trading

    A style of trading that attempts to capture gains in a stock ...
  2. Head Trader

    The manager of a trading business. He or she is responsible for ...
  3. Small Trader

    An options or futures trader holding or controlling positions ...
  4. Day Trader

    A investor who attempts to profit by making rapid trades intraday. ...
  5. Price Target

    1. A projected price level as stated by an investment analyst ...
  6. Breakout Trader

    A type of trader who uses technical analysis to find potential ...
RELATED FAQS
  1. Is it better practice to use a stop order or a limit order?

    Discover whether it is considered best practice to use stop losses or limit orders. Both options have their advantages and ... Read Answer >>
  2. What is the difference between investing and trading?

    Investing and trading are two very different methods of attempting to profit in the financial markets. The goal of investing ... Read Answer >>
  3. What are some ways to reduce downside risk when holding a long position?

    Learn about the various methods a trader can use to minimize risk of loss or protect a portion of profits in an existing ... Read Answer >>
  4. What qualifies a person as a day trader?

    As of Sept 28, 2001, the NASD (now, FINRA) and NYSE amended their definitions of day traders. A new term that they use is ... Read Answer >>
  5. Is there a buy-and-hold strategy in forex, or is the only way to make money by trading?

    Typically there are different ways to trade in most markets. Traders have been classified into three groups, primarily based ... Read Answer >>
  6. How do traders implement the Buy a Bounce Strategy?

    Learn how traders execute the buy a bounce strategy for a security that has reached an important support level. Find out ... Read Answer >>
Hot Definitions
  1. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  2. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  3. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  4. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  5. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  6. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
Trading Center