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Pit Stops:
Types of Traders |
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There are many types of traders. An awareness of the variety allows you to avoid some of the pitfalls. |
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This is the ideal type of trader. You take losses and profits with ease. You focus on your system and follow it with discipline. Trading is usually a relaxed activity. You appreciate that a loss does not make you a loser. |
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You find it difficult to execute at signals. You doubt your own abilities. You need to develop self-confidence. Perhaps you should paper-trade. |
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All losses are someone else's fault. You blame bad fills, your broker for picking the phone up too slowly, your system for not being perfect. You need to regain your objectivity and self-responsibility. |
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You blame yourself. You feel the market is out to get you. You start becoming superstitious in your trading. |
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You start thinking, "It's only money, I'll make it back later." You think all losses will bounce back to a profit or that you will start trading properly tomorrow. |
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You are in for the thrill. Money is a side issue. Risk and reward analysis hardly figure in your trades. You want to be a player, to have the buzz and excitement. |
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You enter a trade but panic at the sight of a profit and take it far too soon. Fear rules your trading. |
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