Personality and character. Those are the only traits needed for a trader to pick the trading style he/she wishes to adopt.
In order to level up in your trading journey, you need to analyze your character first.
Are you an optimistic person that is hopeful in every situation, and doesn’t let negativity affect you? Or a pessimist who calculates the worst-case scenarios and prepares for them all the time?
Once you identify to which category you can relate to, then you can pick the suitable strategy for you
In trading, we have 4 approaches starting with scalping, day trading, swing trading, and position trading.
Scalping is for people that can work under pressure with the ability to make fast decisions. Impatience is one of the common traits of successful scalpers.
Day trading is for more calm people that like routine and tasks that can be finished during the same day. Most day traders cannot sleep if they have opened positions, hence the reason they choose this style.
Swing trading works best with people that like to check the market less often, whereby their positions can overlap to the next day. Knowing that their risks and profits are precalculated gives them the comfort zone experience.
Position trading is suitable for the patient people that are willing to sleep on their money before cashing out. They tend to ignore all the noise that is happening on daily basis and even on a weekly basis.
Now we have identified the different types, and you picked the most suitable one for you.
Practice and examine if this style really is yours, whether it was from the time being allocated for trading or the intensity of trading.
Be faithful to the trading style you chose unless you discover that it is not the one for you and you want to try another style.
Remember streaks will always occur, so a practice of controlling emotions is essential for all trading styles.
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The content published above has been prepared by CFI for informational purposes only and should not be considered as investment advice. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell. The information provided does not have regard to the specific investment objectives, financial situation, and needs of any specific person who may receive it, and is not held out as independent investment research and may have been acted upon by persons connected with CFI. Market data is derived from independent sources believed to be reliable, however, CFI makes no guarantee of its accuracy or completeness, and accepts no responsibility for any consequence of its use by recipients.