What kind of trader are you?
There are thousands, even millions, of traders out there. All of these traders have different trading styles, make trades on different market types, and use different broker sites on their transactions. We, as traders, all differ based on our lifestyles, decision makings, and strategies we use in making trades. No matter what kind of trader you are, we only have one common goal: to earn profit. So we use these techniques and strategies we have in hopes of making money from them. Here are the different kinds of traders you commonly see:
This kind of trader is the one who always wants a secured profit. The disciplined one with a trading plan prepared on each trade he enters. Before entering a trade, he makes extensive research and observations in order to make a profitable strategy. Once he follows a trading plan, he makes sure he sticks to it no matter what happen in the whole process.
The speculative trader is synonymous to the word “gambler” or “risk-taker”. This kind of trader usually makes decisions based on their own predictions on the market’s behavior without factual basis. The problem with this kind of trader is they don’t have any assurance that their assumptions are correct. They usually make profits out of pure luck.
There are also those who blindly follow the opinions of others or whichever decision the majority takes. You can say that they just want to “play it safe” by moving with the herd. The only downside of a blind trader is their tendency to overstay in a stock that has already reached its peak and is on the verge of plunging down. And since they only followed the trend without really understanding why, they end up not really knowing the technicalities and logic behind trading.
The emotional trader has a lot of similarities to the methodical one. Their biggest difference is the emotional trader’s tendency to wander away from his initial trading plan whenever he is emotionally challenged by the trade. This is most often observed when a trader is losing money. Most often, an emotional trader ignores his initial stop loss in hopes that a trade might make a snap back and he can regain his losses, although this often results to more loss.
With the huge number of traders nowadays, they all vary in different aspects. With these differences, there can be several strategies and techniques that can be applied depending on what kind of trader you are. Just make sure to go for the one you have proven to be effective on you. In any case of failure, have a back-up plan to secure your profits. Read here about the 10 good online trading habits of a successful trader.
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