Types of Traders

There are six types of traders who trade in the options market, here we discuss all type of traders in detail and also segment as per their type. Before entering into the share market, First, understand your type and then choose the segment accordingly.

1.Aggressive Trader
2.Moderate Trader
3.Conservative Trader
4.Fundamental Trader
5.Sentiment Trader
6.Arbitrage Trader

1. Aggressive Trader:-  An aggressive trader is a trader who doesn’t wait for proper levels of market and will take an action a little early to grab more profit. For Example Bank Nifty spot trading @ 20400 and according to technical levels, the market will go more up if Bank nifty cross 20500, Here the aggressive trader will not wait for 20500 and take action only @ 20400. The aggressive trader trades very frequently and their risk-reward ratio is also big.  Now let’s come into a segment, bank nifty option tips are the segment an aggressive traders must trade. Because this is the most volatile segment and will give you a good profit on a daily basis.

2.Moderate Trader:- Moderate trader is a trader who is not an aggressive trader but at the same time he is also not a conservative investor. He will take action sometimes before the breakout and sometimes miss the traders also. For Example Nifty spot trading @ 10400 and breakout levels @ 10420, Here he will wait for that or take position @ 10400 only according to the market situation. If Dow future is up and there is no negative factor, Trader will take position @ 10400 only but if there is negative news like India-China War, in that case, he will take position only after Breakout. For a moderate trader, we recommend trading in nifty option tips, as the nifty option is a little riskier their than the bank nifty option.

3. Conservative Trader:- As a name suggests on their own conservative traders means a safe trader, a conservative trader will avoid the trade but will not trade before any break out levels and only trade when he is sure shot about its levels. For Example, Nifty spot trading @ 10400 and break our levels @ 10430, Here trader will buy only after crossing 10430 and will sit idle only before these levels. For conservative traders, if they want to trade in option then we will recommend going on stock option ( as a stock-specific after getting proper knowledge about stock ), and if not option then its better to go with intraday tips provider company in India.

4.Fundamental Trader: Fundamental trader means a trader who trades in EQ stocks for the long term, after checking proper fundamental analysis of the stocks. A fundamental trader should not trade in Intraday stocks, he must trade in the short term or long term. The fundamental trader invests in stocks after checking – EPS, PE Ratio, Return on Equity, Future profitable growth, Dividend Ratio, Market Capitalisation, Debt to Equity, and some other factors.

5.Sentiment Trader: Sentiment trade is very similar to a conservative trader. Sentiment trade will always participate in market trends. They do not attempt to outguess the market by finding great securities. There is a very thin line between the difference of sentiment and conservative trader, Sentiment trade will check fundamental and technical analysis both before entering into a trade while conservative check mostly fundamentals only. On that basis sentiment traders mostly trade in stock future tips after checking the sentiment of stock, specified industry to the stock belongs, and also the sentiment of the market.

6.Arbitrage Trader: To become an arbitrage trader, a trader needs lots of time, very fast trading, and lots of capital to trade. Arbitrage is a long and we can't describe this in such a small article, will write another for this you can check our nifty option most profitable strategy to understand little about arbitrage. To become an arbitrage trade you should be full time in the market and want consistent ( but a very small return on your capital traded ), If you have at least Rs  5,00,000/- to trade then only we recommend you to at least think to go for an arbitrage. Best to get an option trading tips free trial, if you don't have much time and less capital to trade. We will help you to get more information then you can proceed with arbitrage also.