US traders – from pros to hobbyists – have a platform with new options that can better suit their style and interests. Below, we explore the three trading types and what Nadex can offer them.
The fast-paced world of scalping; the leisurely marathon of position trading; the technical prowess of algorithmic trading. When engaging in the financial markets, there is a style that matches most personality types. And, in a year of geopolitical turbulence and high volatility, potential opportunities can arise.
Faced with choppy charts and the financial potential they imply, Dabblers, Hobbyists and Pro traders alike will have their own strategies in mind. But what are the characteristics of these very different trader types, and what do the differences between them mean for their approach to the market? We explore this, and more, below.
The Dabbler Trader
The Dabbler trader is often the type who has read the success stories that trading conversations disproportionally contain, and wants a piece of the action – while being somewhat ambivalent about the commitment level required. Although some dabblers may be fairly well informed on the technical and fundamental factors that can move markets, others may underestimate the degree of preparation necessary.
The inexperience of dabblers in the market can contrast markedly with more seasoned traders. For example, while an asset’s sudden price plunge may prompt a Dabbler to go short, a Pro may see the bigger picture – perhaps as an example, price being set to test a key support[1] level, raising the chance of a bullish reversal.
To this end, the collective Dabblers’ efforts may affect the way price plays out in a way Pros look to exploit. In our above example, an array of Dabblers may push price to lower lows, while
