Title: What Type of Trader Are You?
Headings: What Type of Trader Are You?
What Type of Trader Are You?
Key Takeaways
Fundamental Trader
Noise Trader
Sentiment Trader
Market Timer
Arbitrage Trader
The Bottom Line

Content: Of course, unearthing and interpreting those facts is a time consuming, research-intensive effort. Another challenge comes in the form of the financial markets themselves, which do not always behave in logical ways (especially in the short term) despite reams of data suggesting that they should. Noise Trader
Noise trading refers to a style of investing in which decisions to buy and sell are made without the use of fundamental data specific to the company that issued the securities that are being bought or sold. Noise traders generally make short-term trades to profit from various economic trends. While technical analysis of statistics generated by market activity, such as past prices and volume, provides some insight into patterns that can suggest future market activity and direction, noise traders often have poor timing and over-react to both good and bad news. Even though that description may not sound very flattering, in reality, most people are considered to be noise traders, as very few make investment decisions solely using fundamental analysis. To put this style in perspective, let’s revisit our earlier analogy about a trip to the mall. Unlike the fundamental analyst, a technical analyst would sit on a bench in the mall and watch people go into the stores. Disregarding the intrinsic value of the products in the store, the technical analyst's decision would be based on the patterns or activity of people going into each store. Technical analysis, like other strategies that involve data analysis, can be time-consuming and may require quick reactions to take advantage of perceived opportunities.