Learn To Trade
 

Trading Glossary

From beginners to experts, all traders need to know a wide range of technical terms. Let us be your guide.

Learn More

Knowledge Base

No matter your experience level, download our free trading guides and develop your skills.

Learn More
Learn To Trade

Trade smarter: boost your skills with our training resources.

Create a live account
Market Analysis
 

Market News

All the latest market news, with regular insights and analysis from our in-house experts.

Learn More

Economic Calendar

Make sure you are ahead of every market move with our constantly updated economic calendar.

Learn More

Technical Analysis

Harness past market data to forecast price direction and anticipate market moves.

Learn More
Market Analysis

Harness the market intelligence you need to build your trading strategies.

Create a live account
Partnership
 

Affiliate Programme

Grow your business and get rewarded. Find out more about our Affiliate Programme today.

Learn More

Money Manager

Increase your income and get compensated for your trading knowledge with ThinkInvest, putting you in control.

Learn More

API Trading

Create your own trading platform or data tools with our cutting-edge APIs.

Learn More

Introducing Broker

ThinkMarkets ensures high levels of client satisfaction with high client retention and conversion rates.

Learn More

White Label

We supply everything you need to create your own brand in the Forex industry.

Learn More

Regional Representatives

Partner with ThinkMarkets today to access full consulting services, promotional materials and your own budgets.

Learn More
Partnership

Plug into the next-gen platforms and the trades your clients want.

Create a live account
About ThinkMarkets
 

About Us

Find out more about ThinkMarkets, an establised, multi-award winning global broker you can trust.

Learn More

Security of Funds

Security of your funds is our number one priority. Find out more about our insurance policy with Lloyd's of London.

Learn More

Trading Infrastructure

When it comes to the speed we execute your trades, no expense is spared. Find out more.

Learn More

ThinkMarkets News

Keep up to date with our latest company news and announcements.

Learn More

Contact Us

Our mulitlingual support team is here for you 24/6.

Learn More
About ThinkMarkets

Global presence, local expertise - find out what sets us apart.

Create a live account
Create account

Trading styles

Find out about the different ways traders trade the markets based on time frame and holding period. 

 

Trading styles

Here we will discuss the trading styles you are likely to come across. What typically separates the trading styles is the length of time you intend to be in a trade, the timing of your entry and in some cases, the frequency of the trades.

There are no strict rules as to which timeframes a particular trader would use to trade, however the table below provides typical timeframes you would expect to see a trader using.

Trading styles
Trading styles

EOD (End of Day)

Trading styles

This is a popular trading style for anyone who works full time. They may analyse the markets on a daily or weekly basis and set pending orders to catch price moves as they evolve – they will not be watching the screens when their orders trigger.

If you have a busy lifestyle this may be a suitable method because it requires less time in front of the screen to analyse or manage the trade.

Fundamental (Macro Trading)

Trading styles

Using Fundamental information and/or financial models to assess the strength or weakness of a Stock, currency, market, or country to anticipate future price value. The source of information would vary between stocks and Forex as they are are also affected by internal news of a particular company, as well as macro information.

Intraday trading

Trading styles

An intraday trader opens and closes a trade within the same day. Swing trading the 1HR chart could be included as Day Trading, and day-trading has a lot more emphasis on Technicals over fundamentals.

There are also different forms of intraday trading which are covered in detail below, including: Scalping; News Trading; Swing Trading; Trend Trading.

News trading

Trading styles

News Traders tend to Specialise in ‘Red News’ events and trade during, or around the release of an important news release. Extreme volatility can occur if a surprise figure is released (which is not widely anticipated by the markets) which creates opportunity to make more profit over a very short period of time. However longer-term moves may also unfold after an important event which may get the interest of Macro Traders to trade on the longer term trend, however News Trading typically relates to short-term events.

Position trading

Trading styles

A type of trader who holds a position for the long term (from weeks, to months to years). Long-term traders are not concerned with short-term fluctuations because they believe that their long-term investment horizons will smooth these out.

Position Traders tend to use a lot more fundamental information due to the longer holding time of the trade, yet they may also be purely technical. Position Traders and Swing Traders are more likely to use Pending Orders to enter the market, as they don’t need to be at the screen when their trade enters or exits.

Scalping

Trading styles

Scalping is a form of intraday trading, and unlike the other styles, you must stay glued to your screen as if your life depends on it.

Whilst it is an extremely popular form of trading due to the higher potential for profits, it is also one of the harder styles to master as it requires a lot more discipline from the trader. Despite this last point, scalping typically it attracts the most interest from newer traders.

Intraday and Scalpers will use 1-click trading to enter the market live because a quick entry is very important to them.

Swing trading

Trading styles

As a Swing Trader you are literally trying to trade the swing of a chart and hope to catch a big move. Popular timeframes are to enter on the daily chart, and hold a position for days, or sometimes weeks. However the 1 hour charts are also very popular with a view to hold a position for a few hours, or maybe overnight and potentially for a few days.

Technical trading

Trading styles

Analyse, enter, manage and exit their trading using Technical Analysis. This can be performed on any timeframe, although generally speaking ‘Technicals’ are more popular on intraday timeframes, however Technical Analysis can also be used for long-term forecasting.

Trend trading

Trading styles

The object here is to identify a trend and only trade in the same direction as the suspected trend. Traditionally trends traders were associated with long-term fund managers, however in reality you can become a trend trader on any timeframe you choose as all timeframes trend.

Back to top