When you question yourself regarding the trading platform like the Snapcash binary and any similar ones that you would choose to place your trades on, you should also question yourselves as to what type of trader are you and which category of trading would you belong to. Perplexed as to what this is? Hearing something like this for the first time? Now, this is something that many of us do not realize and in fact forget to actually pay attention to. This realization or understanding would help in understanding the pulse of the market. Now rate yourself to get the answer for this from the below classifications and try to see where you belong to in the market.
Classification of traders
- Fundamental trader – he is the one who analyses the market well before making any moves. He gets in detail into each company`s information and position in the market and then makes a decision regarding the buying or selling of shares or stocks. Now this involves both long-term and short-term analysis. Long-term information relates and explains the financial position and status of a company that is revealed by the financial statements at the end of each year. While short-term information talks about the changes in the policies and principles of a company that happens every now and then with respect to the changes in the products or services dealt by the company. When comes to a trader, both these are important and he needs to pay attention to all of these to come up with the best choice in the market.
- Noise traders – unlike the above-classified traders, the ones who belong to this segment of trading are those who always go by the short-term changes and try to make the best out of the economic changes that are expected to happen very frequently. They do not follow any fundamental analysis or information in making decisions.
- Sentiment traders – they are a little different from the other types of traders. Here the traders do not go by the company`s performance but by how the asset or security performs and flourishes in the market. They believe in the momentum of the market regarding the asset or stock`s performance.
- Timing traders – these traders try to gauge the movement of a security in the market, whether high or low and based on this consensus, try to make their investments on the assets that are expected to move towards profits. This prediction is done with the help of economic data and technical indicators.