Developing a trading style

[Ramon Ramirez]

Master Traders develop a style that is a reflection of their education and character. Most individual trading styles are either positional or combinational and, rarely, a synthesis of both. However, there are other styles.

 

Positional traders take x amount of positions within a specific price area where the market is thought to be favorable to their trading strategy. This may occur on short term weakness when the longer trends are bullish. A known risk is assumed for a specific profit taking area. Positions remain until the losses or profits are taken or the price action analysis negates the trading strategy.

 

Combinational traders do not have the patience of positional traders, and want immediate profitable results or will exit the market quickly. These traders add additional orders as the market moves their way, building up large positions for fast two- to six-day price moves, then take profits and exit the market.

 

A third type of trader is a system trader, who adheres to a trading system discipline.

 

A fourth type of trader is the method trader. Methods differ from systems in that a method can be traded either as a system with no discretion, or traded with discretionary intervention. A method allows for a trader to be able to change parameters. A method gives full-disclosure of all its parameters and the logic behind the method. It should be realized that both systems and methods are based not so much upon a rationale as they are upon pure statistics, i.e., when a certain setup or pattern occurs, and you behave in a certain way, the result is statistically in accordance with the probable outcome.

 

The complete trader is able to combine all or parts of the above approaches with his own style. Trading mastery combines observation, scientific knowledge, good judgment, intuition, and creative instincts with decisive action.

[shabz]

It all boils down to finding a trading method that suits your personality and gives you an edge that transalates into a certain percentage of winning trades. Controlling your risk is of paramount importance as staying in the game & resisting changing your method when a series of losing trades will inevitably occur. Even a system of 90% winning trades can have up to 6 successive losing trades statistically. Can you handle trading when you hit a losing streak ?

Controlling your emotions when you win as well as when you lose. Keeping trading errors to the minimum and avoiding trading on gut feelings can also be challenging.

Knowing the market conditions/currency pairs where your trading method can prosper can be learnt by experience & backtesting and that also will mean keeping a log of all trades. Analysing your progress after a series of trades.

Continue seeking knowledge & experience from the masters of the trading world.

Above all have belief in your own abilities to carry out your trading plan without hesitation, deviation or emotion.

[flowerhorn]

Yes, confidence is the key in successful trading. That's why so many people give up trading after a short time. They start to ask themselves,"I can't win this game... this is a scam!"

 

How many of us ,traders, can still continue trading, after suffering a big chunk of loss of capital or lost our entire capitals in a relatively short time? That explains the miniscule rate of successfu forex traders.

[Rey Nuevo]

Yes, confidence is the key in successful trading. That's why so many people give up trading after a short time. They start to ask themselves,"I can't win this game... this is a scam!"

 

How many of us ,traders, can still continue trading, after suffering a big chunk of loss of capital or lost our entire capitals in a relatively short time? That explains the miniscule rate of successfu forex traders.

 

Confidence and Patience is the key..