I have found that new traders share many commonalities when I speak with them. New traders are most excited about the potential markets offer and are eager to start trading. If they have a plan of their own, they can be certain that they will succeed. It seems that the old boxers’ saying, “Everyone is a fighter until the last punch,” holds true almost everytime. Most traders are determined and never give up. They keep trying to implement their plan until it is abandoned. But some new traders trust their broker’s personality to guide and direct them through the markets. From trading with clients, I’ve learned that successful traders know their personality type to Certus Trading Review within their temperament.
Here are the types of traders personalities.
1) Day Trader- Day traders are traders who enjoy tackling volatility on the markets every day. Day traders can make quick profits. They like small profits and continuous activity.
2) Position traders – Position trading prefers trade execution within a two to three day window. Position traders will usually have clear objectives and anticipate execution. They will be willing to let the short term market trend work in their favor. When position traders face either negative or positive objectives, they will wait for the right signal to enter again. Position traders tend to use smart money management, which is different from most day traders. They don’t tend to overextend.
3) Buy-and-Hold Trader: Buy and keep traders, or sell and maintain traders, are the most conservative. For entry and exit in the market, buy and keep traders have defined goals. Many buy and hold traders wait patiently to see if there are any opportunities. They would rather miss out on potential opportunities that might not be in their favor. These traders are often good money managers. They know how much money is needed to invest in the volatile markets. They trade less often than the average trader and know that margin calls are possible as they move through volatility.
NOTE: Brokers want you to trade day. They need to generate commissions. Brokers are available to help identify your personality so you can trade within it.
As you learn to trade, it is important that you identify your trade personality.