There are thousands of different ways to trade the market. During the last 100 years, various trading strategies and techniques were invented. One of the ways to categorize them is to split them by types of traders. Such a category type will lean on 2 main elements: trading frequency and time frame selection.
1️⃣ - Scalper I guess 99% of newbie traders start from scalping. Trying to catch quick market moves and become rich quick, newbies are practicing different scalping strategies. What is funny about scalping is the fact that such a trading style is considered to be the easiest by the majority while remaining one of the hardest in the view of pros.
The main obstacle with scalping is a constant focus and rapid decision-making. Scalpers usually open dozens of trading positions during the trading session, most of the time being in front of the screen constantly. Paying huge commissions to the broker and dealing with complete chaos on lower time frames, the majority simply can't survive the pressure and drop, leaving the pie to true gurus.
2️⃣ - Day Trader Day trading or intraday trading is the most appealing to me. Staying relatively active, the market gives some time for the trader for reflection & thinking. Opening and managing on average 1-2 trades per trading session, the intraday trader is granted a certain degree of freedom.
However, with declining volatility, quite ofter intraday traders get a relatively low risk/reward ratio for their trades,
3️⃣ - Swing Trader Swing trading is the best choice for traders having a full-time job. Primarily being focused on daily/weekly time frames, swing trading is not demanding for a daily routine and aims at catching mid-term/long-term market moves.
With an average holding period being around 2 weeks and opening 1-2 trading positions per week, swing trading is considered to be the least emotional and involves low risk.
The main problem with swing trading is patience. Correctly identifying the market trend and opening a trading position, the majority tends to close their positions preliminary not being patient enough to let the price reach their target.
Your definition of Day Trader might be definition of Swing Trader for others. A Day trader, by definition, will NOT hold positions overnight.
Swing Trading is not a question of TIME FRAME. Although alot of people refer to it that way.
In reality, a Swing Trader is one who would hold trades during its "swings" up and down to capture as much of the trend as it is possible. A trader can swing trade on a 1 minute chart, 5 min or daily weekly chart.
A Scalper is a trader who only takes smaller "clips" of a swing.
etc etc. .. thanks anyway.
Captain_Walker
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There is also another kind of trader - called the gambler. This is the type that is ruled by bandwagons of folk on chatboxes of various kinds, hot tips, and social media sentiment.