Link: Different Types of Traders on a Chart

Apr 13, 2007: 1:12 AM CST

From the Traders Action Zone, the author writes a brief post regarding the TAZ strategy, but of great importance for my focus here is the areas and confluence of different types of strategies and traders all on one chart. Think about how different traders and strategies create the aggregate charts we see.

The author (Craig) utilizes a chart and notes the subsequent trend and describes where position traders, swing traders, momentum traders, and (gasp) day-traders “do their business” on the chart at certain zones.

Not to get you too hyped up, Craig throws cold water on your developing, greedy ambitions with this statement:

There isn’t ANY trading strategy that will make you a consistently profitable trader. Sorry to disappoint you. The only thing that will enable you to consistently pull money out of the markets is YOU.

YOU must have discipline. YOU must be able to take losses. YOU must be able to take your profits. YOU must eliminate fear. Put simply, you must be able to control the emotional and psychological problems that prevent success.

That will be your biggest challenge in learning how to trade stocks with any strategy.

That’s really the secret, but new traders don’t want to hear that there is no magic strategy or magic indicator that can make your wildest dreams come true.

On another post, the author describes any swing trader’s core strategy specifically as:

…trying to identify when there is a transition from sellers to buyers (long) or from buyers to sellers (short).”

I thoroughly enjoy many of the other posts and easy to understand concepts on the site.

Next time you review a chart, think about where different types of traders see opportunity and where others see risk based on their overall strategy and see where you fit in the (chart) picture.

3 Comments

3 Responses to “Link: Different Types of Traders on a Chart”

  1. Rahul Says:

    Yep, Corey has a great site and the market timinig part of my strategy has been picked up from his writings.

    Rahul
    http://www.tradernirvana.com

  2. Craig Says:

    Hi Corey,

    Thank you for the mention. I hope that one day I can actually find the time to “finish” everything on the website!

    See Ya!

  3. Swing Trading Says:

    Agree about the no trading strategy will ever guarantee profits. Especially with the way things are with HFT, it seems as though the private trader seriously has the odds stacked against him or her.