Sumary of What Trading Style Best Suits Your Personality?:
- 24, 2021Trading style often correlates with the personality of the trader.
- It is important to reflect internally on personality and lifestyle before choosing a trading strategy and creating a trading plan.
- This is because using a trading style contrary to your personality will lead to difficulties down the road in sticking to your trading plan.
- A trader who isn’t comfortable with a trading style or has not found a home in a specific trading style is the one who most often makes the most common trading mistakes.
- Trading Styles for Highly-Organized Individuals Short on TimeStrategies to consider:Swing Trading- Swing trades are considered medium-term as positions are generally held anywhere between a few hours to a few days.
- Automated Trading – Another approach for traders short on time, or trading in their spare time, is automated trading.
- Trading Style for Cautious Individuals with Time to ResearchStrategies to consider:Position Trading– This is suitable for traders looking to hold positions for a prolonged period (months/years), often basing decisions on long-term fundamental factors.
- Large capital is required to withstand any potential volatility during the lifetime of the trade in order to avoid a margin call.