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Post# of 137481
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Profe$$or

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Profe$$or

Re: None

Tuesday, 12/25/2007 8:40:44 PM

Tuesday, December 25, 2007 8:40:44 PM

Post# of 137481
It is crucial for traders to know who they are and what they are. Because only then will they be able to know how they should play the market. You see, traders' styles of play should be based entirely on their tendencies, likes, desires, fears, etc. If traders are trying to fit into a style that goes against their psychological grain, if you will, the results could be disastrous. For instance, take the trader we know who is incredibly impatient. This trader may find it tortuous to hold a stock for more than 10 days. In fact, even 5 days would seem like an eternity. So with this dominant trait firmly in place, taking on a long term trade for 2 months or more would be a big mistake. The trader would, in effect, be fighting him or herself via the market. But knowing this, the trader would want to limit plays to those that potentially offer a faster, more immediate move. And while the frequency of loss would be greater, those types of plays would gel, be in sync with his or her personality, a whole lot better. And as a result, better decisions would be made. Get the point? Here are a few questions you should ask in order to find who, what, and where you are as a market player.

Am I patient?

Do I feel safe in the hands of time?

Does the increase in time make me grow more nervous?

What is my comfort level for risk?

Am I one who is willing to take a bigger hit (loss) in exchange for potentially scoring bigger?

Do I tend to be more comfortable going after smaller, less significant price moves, while keeping my losses at a minimum?

Am I a gambler?

Do I like to put my stake on the line in a big way?

Am I the type who likes to score in tiny bits and pieces?

I'm sure you get the point.

Enroll in Wealth University today!
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