Finding You Own Trading Style

Date Friday, May 22nd, 2009

Some of us may start trading after attending a trading course in exchange for the knowledge imparted by some amateurs or experts. Some people may start trading after reading several books and paper trading for months. Some regard trading as a way of lifestyle, playing the game of who’s right and who’s wrong on the pricing of the securities. people walkingSome regard trading as a self discovery journey on how to deal with innate human emotions. Whatever the case may be, all of us began our own trading career some point in life with many different reasons. We have our unique own way of analysis and looking at things differently, not to mention on how emotions will affect our reactions in different market conditions. That is why we always hear people saying that the market is always in a constant flux of emotions. It is a chaotic place where greed and fear prevail. If there is ever a list of the toughest careers in the world, trading has got to be one of them. This is a career that will require your passion, dedication, full focus, discipline, lots of thinking and reading on your part to constantly upgrade your knowledge and trading skills, and most importantly of all, your ability to control your emotions and not let them affect your judgment.

So what am i required to know if i am just starting out? One of the keys to successful trading, would be to find your own trading style. Are you traderscomfortable investing for the long term, such as 5 years and above? Are you more inclined to making money in a shorter time frame like a few days to a week or even a few weeks to a few months? Are you hungry for excitement and willing to take risk by trading just a few hours to a day? This will have to depend on your emotions when you are trading. Each individual has a unique level of tolerance for risk and area of comfort. Some people may be a hybrid and comfortable in trading or investing over different time frames. However, every trader will have one comfortable trading time frame which suits their style. Unfortunately there are no guides to finding that. You will only discover your own trading style when you first start to trade. Only time will tell.

One thing to take note of, is to know that not everyone is a born expert trader. It is unsuitable and not recommended for the weak-hearted who allow their emotions to take over their thinking every time the market fluctuates. There is always a probability of losing money whether you are just starting out or already are a seasoned trader. The question will be how fast? Again, only time will tell. One thing for sure, every trader has lost money. It can be due to mistakes, emotions or something else. This is why it is crucial to your trading career to stack as many odds in your favor as possible.

Discovering your trading style is only one of the key factors to solving the puzzle. Trading can be very difficult and stressful. However, a piece of good news will be the implementing of many strategies accordingly and also the use of time frames to your advantage when you have discover your trading style. Slowly work your way up the learning curve. Unlock your trading potential by first discovering your trading style.

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