How to find your trading personality and trade profitably

Do you want to know more about how to find your trading personality and trade profitably? Watch our latest video to find out which is your trading personality and how to effectively use it in your everyday trading.

Find your trading personality – A simple but effective guide

One of the things that you have to keep in mind when becoming a trader is that no 2 people are alike. In other words, you will trade quite differently than I do, and as a result we can trade the exact same type of systems, but have wildly different results. A lot of this comes down to your trading personality, and of course psychology.

Some traders are going to be more risk adverse than others, and therefore they will need to understand this going into a trade. This is where position sizing comes in, because not only do you have the statistical analysis of what works and what doesn’t, you also have the psychological analysis of what you are comfortable with. If you are not comfortable with the size of the position, you will more than likely do something to cause problems in your results.

In order to understand what your trading personality is like, you should keep a journal of all of the trades that you take. For example, you may buy the EUR/USD pair, keep the date and time handy, as well as the price and all of the other parameters such as why you got involved. Another thing you should keep track of is how you felt about the trade. The more comfortable you are, the better off you are going to do. You can evaluate not only the comfort level of your trading, but the trades that you seem to do better at. Oddly enough, some traders simply do better at particular pairs over other ones. There’s no real logic to it, it just seems to be something that’s embedded in that particular trader.

By keeping meticulous notes, you can evaluate how your trading personality of facts your decision-making. Some people prefer short-term charts, while other people prefer to trade weekly or even monthly candles. They are more passive. If they’re passive trader, there’s absolutely no reason that they should be even looking at 5 minute charts for example.

Everybody is going to be different, and there is no correct way to trade the markets. You need to figure out what works for you, and incorporated into your trading strategy and your trading plans. Without doing so, you are likely to struggle going forward.