What Type of Trader Are You?
by Jeffrey Blackman
Knowing others is intelligence; knowing yourself is true wisdom. Mastering others is strength, mastering yourself is true power, Lao-Tzu.
As a trader we often ask who we are after we begin trading, when really we should know long before we start. The kind of person you are has an effect on the way you trade. Below is guide to help you find out a few things about yourself and your system. If you find that your system and personality disagree it might be time to take a small break reevaluate and make some modifications. Or if things are hectic in your life try to eliminate stress factors and this will more than likely improve your trading and attitude.
Time frames
- Day Trader (Intraday)
- Swing Trader (Daily to Weekly)
- Position Trader (Weekly to Monthly)
Method
- Fundamental Analysis
- Technical Analysis
- Trend
- Counter-trend
- Both
- Hybrid (Fundamental & TA)
Risk Level
- Risk Averse
- Risk Tolerant
- Footloose (a.k.a. Risky)
Personality Type
- Emotional
- Mixed
- Robot
- Instinct/Gut (This may take years to develop)
Some questions you should probably ask to find out what type of trader you are.
- What do I need to make me happy? (i.e. Large profits; steady equity curve; low drawdown)
- What can my gut withstand while following my system? (drawdown)
- How and where am I comfortable exiting a losing trade?
- How and where am I comfortable exiting a winning trade?
- How much time do I want to commit to trading the markets daily?
- What style of trading fits me?
- Do I have any emotional conflicts in my life that could affect trading?
- What goals do I have for my trading? (The answer may change your time frame, time allocated, or risk level)
- What FX pair(s) do I want to trade? (some have more volatility than others)
- How does outside opinion (i.e. news, conversation, etc) affect my trading decisions?
Happy Trading,
Jeffrey Blackman
About the Author - Jeffrey Blackman
Jeffrey Blackman is a risk-averse fund manager that swing trades (medium-term) Forex and U.S. Equities. He first got his feet wet in the stock options market. His trading habits grew from a simple hobby to a full time obsessions after he fell in love with the high liquidity, high leverage FX market.
Blackman Capital Management has been in incubation for two years and uses a strategy that is based on technical speculation of trend and counter-trend methods. With risk management as a core feature in the strategy, Blackman Capital Management prises itself in eliminating the risk out of all trades and allowing clients capital to earn "risk free" interest
