Smart ways to find the best trading strategy based on your personality,
new traders tend to be quite messed up when it comes to trading strategy. As you learn Forex trading deeper, you will know that a trading strategy is not merely something you can pick up from a trading forum or on social media. However, it is more like a collection of tested principles and rules that must make sense to you and your trading personality.
How to Find the Best Trading Strategy for Your Trader Personality
Thus, how can we find the perfect trading strategy based on our trader personality? Well, selecting a trading strategy randomly is not a good idea since it has become the major reasons why a lot of traders fail. To help you decide on the right trading strategy that can maximize your trading opportunities, here are a few smart ways to follow.
Settle on Your Trader Personality
The first thing that you need to do is determining your trading personality. There are three major types of traders including the aggressive bully, the greedy scrooge and the anxious wimp. Based on these personalities, there will be different best options to choose among trading strategy. If you don’t know how to decide, here are some signs of each trader personality.
• Signs of the Aggressive Bully
The aggressive bully is those who love to talk about their big winners, big positions, but also like to make an impression with big losses they take like a real man. If you are likely to enter a trade too early without waiting for your trading rules’ confirmation, it can be a sign that you are a kind of aggressive bully trader.
• Signs of the Greedy Scrooge
The greedy scrooge tends to talk about money and risk management. They love statistics and usually play it safe. They like to control and make steady gains instead of talking all about big money or winners they got. If you execute your take-profit too late and look at price reversing and giving back profit, it can be sign of your greedy personality.
• Signs of the Anxious Wimp
The anxious trader often discusses about setups as well as potential trades they see on their charts. They won’t enter the trades which they talked about since they don’t feel right or they will place a trade late since they are not sure. If you frequently miss entries although you see them developing right in front of you, you can be an anxious wimp.
Fine-Tune Strategy Parameter Based on Your Personality
After determining which type of trader are you, you should fine-tune your trading strategy parameters regarding your personality type. Most traders do not come this far. They tend to give up easily when they find that a strategy doesn’t work as they want. If you have a professional mindset, you won’t give up and try to find the best strategy that work on your personality.
Consider Trade-Frequency and Timeframe Choices
Furthermore, you should find a trade-frequency and timeframe choice depending on your personality. A greedy or aggressive type of trader may have issues if they can just find one trade each week or two. On the other hand, an anxious trader may often miss setups and high timeframes. At this point, lowering timeframe can be a good choice for an anxious trader.
In brief, discovering a trading strategy is basically more than just tailing other traders in a forum or social media. Instead, you need to find one that works for you considering that every trader has their own unique personality. And don’t forget to continuously
learn Forex in order to master your trading strategy and the way to apply it.