Everyone in this universe possesses unique style as well as implementation. Self-Reflection is the only way to know that which trading methodologies will suit your personality and will bring positive output.
Basically, a trading strategy is a set of testing rules and principles which have to make sense to you and which have to match your trader personality. But,99% of the people failed to perform in trading due to they randomly applied the blindly recommended norms while choosing the strategy that works. For this our research-based investment advisory firm Investelite Research is here to provide you with some basics trend to follow by an investor that actually suits investors personality.
According to the survey and research, there are mainly 3 types of trading personality found.
1. The Aggressive Bully: This types of investors generally love to talk about big positions. Big winners, but also like to impress with huge losses he took like a real man. He is the get rich or die trying kind of trader.
2. The Greedy Scrooge: This type of investors usually love to talk about risk and money management. Investors usually follow statistics and maintain stop loss for locking a profit. Control, risk, slow but steady gains and always the finger on the mouse are the traits that mark a greedy trader.
3. The Anxious one: Traders which usually will not enter the trades that they talked about because they ‘didn’t feel right’, or they will enter a trade late because he ‘was not sure’. Another trait of the over-anxious trader is the constant questioning and reaching out for other people’s opinions. Anxious trader usually chooses a risk amount that is too small.
Analysis and steps for matching trading personality :
- Understand the trading time frame personality. Whether you fit for day trading, swing trading or long-term investing type trader.
- One must know the trading setup personality whether to follow technical concepts or fundamental concepts.
- Trading Risk Tolerance personality is the major factor that all should follow to make for a high return with minimal risk.
What we Investelite Research Suggest?
For some trading is managing money and for some to earn maximize gain. Some have the tendency to experience negative emotions especially under stressful circumstances where someone who scores high could be at risk of over trading. Losing money in trading is therefore not exclusively the fault of the trading strategy itself but a mismatch between trader and trading method.
- Consciously define parameter one should focus to match your personality.
- Make adjustments if you experience problems.
- Evaluate the performance of each individual parameter and how you deal with the team.
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