Find the right trading strategy to match your personality type

Each one of us has a different personality, and this is the type of thing that differentiates when it comes to trading too. Because of our personality, we tend to trade differently. Needless to say, this is definitely the type of thing that you need to take into consideration as much as possible. Every trader should take their personality into account when trying to find a specific trading approach. That doesn’t mean one is bad and all the others are better. You just want to find what works in your own case and then re-adapt accordingly based on the market and other similar factors.

Position trading
If you want to trade with a long term perspective in mind, we believe that this is the ideal strategy. What it does is it allows you to focus on those stocks and investments that will give you a good income years from now. With that being said, you need to target several thousand ticks if possible. Needless to say, with position trading you need to focus on those things that give inherent value in the long run.

You want to avoid any popular opinions or any of the more common trends that you see. Instead, you are playing the long game. If your personality is usually rushed and you focus on short term gains, this is not for you. Position trading is for those that do want to play in the long run and which know how to approach this with a patient, unique approach. That’s why you really have to give it a try for yourself and adapt it appropriately for the best outcome.

Swing trading
This is another one for those that have a patient personality, although it’s not as long term for the others. The idea here is you need to have patience to wait for a trade, however you do get a fast profit once you enter that trade. Swing traders tend to keep their trades overnight or over a shorter period of time. That’s why this is for those that are patient, it’s not for someone that wants to trade on the spot, as it might not give the best possible outcome right away. With that being said, you do need to think about more than just day trading. These systems are very impressive and they are definitely something you want to focus on as much as you can.

Day trading
Day trading is great for those that have a fast personality, which are focused on trading and getting a great outcome right away. Granted, these are the people that sit in front of the trading panels and don’t want to miss any trade. Day traders are always rushed trying to make a quick profit, so they don’t really care or want to know more about long term trades. Instead, they have a fast paced approach and want to see the results right now. There’s nothing wrong with that, since every trader has their own personality and use that to their advantage.

Conclusion
As you can see, the personality you have does affect the way you trade quite a bit. The reality is that most of the day traders will never do any long term trading strategies because they lack patience. That’s why you want to know your trading personality, because it will show you exactly what results you need to consider and what benefits are being brought to the table. Use that to your own advantage and once you use it wisely, your personality can actually benefit you if you pick the right trading strategy!