Homework Task Subject: Steemit Crypto Academy | Course 2 | How To Read Candlestick Charts In Different Time Frame & Information about Buy-Sell(Support & Resistance).

Question: What type of traders available in the market, explain how they work?

Trading in Crypto currency has gained recognition over the years. Many exchanging platforms are accepting various types of crypto currencies as a digital asset. According to @steem4u in this lesson, there are three types of traders when it comes to cypto assets. They are as follows short time, long time and scaling traders. I will quickly discuss them again and add other types of traders I discovered during my further study.

Long time traders: These sets of traders are after long time gain they are focus on benefiting from rise in value after some period of time. Most traders in this category invest in coin at the cheapest values; patiently waiting for it to rise by studying market forces or phases. Most of them know how to persevere irrespective of market fluctuations and they only sell when prices of coin are at its peak.

Short term traders: These set of traders focus on instant gains; they study markets movements so they can take advantage of it within shortest possible period. It can even be as quick as an hour or within few minutes. This kind of trading is greats for traders who have experience and time. They must also be update about most recent market trends. This type of trading has an edge over long time trading because it helps the investor to act faster to markets fluctuations therefore incurring lesser losses.

Scalpers: Scalping has to do with selling and buying within a short period for a certain profit. These sets of traders are the very impatient but they are also good in taking good decision under pressure. They understand and monitor the impact of any market change. It is normally time consuming and very engaging, although they often make low profits but enjoy security in term of assured earnings.

Source

Others include:

Hold traders: This trader’s hold coin for a very long time. They have high sense of emotional intelligence to withstand market shocks. Traders in this categories are also very discipline.

Swing Traders: They are specific target short term trades who are more grounded compared to scalpers. Swing traders depend on technical analysis to trade.

Day Traders: They are the most committed to the trade. They mostly participate in the market during active hours, although they are short time market holding.

Position Traders: They are like the swing traders although they are more in-depth. They also study the market before investing with a focus of long-term profit but they don't follow market charts and trends as others do.

Bull Traders: Bull trading follows the style derived from the traditional forex trading.

Bear Traders: The bear traders are the direct opposite of the bull traders. They trade crypto currencies in anticipation that the market will fall.

What is the importance of support and resistance?

The volatile crytocurrences market has been likened to bouncing a ball against a ceiling. The floor and the ceiling are usually the two barriers that constraint or limit the movement of the ball. In crypto world they are called support and resistance levels.
Therefore, every trader must master the art of support and resistance if they must succeed.

Such limitations in trading can result to long-lasting impact on an asset, since price action hardly forgets the past. If traders think a particular price level is a great exit or entry point, it is most likely going to act as a limitation for prices before all respective needs are fulfilled.

Thank you for reading

Cc: @steemcurator01
Cc: @steemcurator02