Understanding what type of investor you are is key to understanding how you approach the markets.
Scalper
The “gamblers” of the industry. Often relying on “gut” feelings and emotions or, attempting to jump in to “major” news announcements. Usually disappointment ensues because of liquidity issues at these times. Quite often they will open direct “Hedge” positions in the same pair, to attempt to capture the market one way or another (this doesn’t work either). Scalpers come and go, some get lucky for a while but inevitably their success is short lived.
Many new investors begin this way and then mature into day or swing traders, with knowledge and experience. This type of trading requires full time monitoring of the markets, with open/close of many positions daily, to make small profits, usually with high leverage (risk).
Day (intra-day) traders
These investors usually open positions within 1 trading session or day, their positions are not held overnight. They set positions with stop losses and take profits (although, many will never reach these limits) these investors will check their positions regularly throughout the day and close positions before their SL/TP. As investors, sometimes it’s easy for day traders to forget to look at the bigger picture of the overall underlying trend.
Swing traders
Swing traders generally have a longer term picture and strategy, they are happy to invest with a realistic stop loss and take profit. They usually understand that, it will take time to get the returns they are looking for, therefore, are quite happy to leave their positions open for a number of days or even weeks, to allow the markets to reach their targets. Usually they will accept that their positions will be in loss at some point and lower leverage is used, so are generally less emotional/impetuous about the markets.
Term Traders
Are usually well balanced investors that hold positions for weeks or even months. They have a market strategy and they will stick to it. Usually lower leverage with larger margin values. These investors understand that big gains come from big movements and these come with time.
And now meet the new breed of Investor:
For Investors that do not want, or cant, make the time to learn the complexities of the markets. Or investors that wish to diversify their portfolios and limit their risk. Simply choose the Top Preforming traders for the Risk levels that suit them. These investors are happy to do their homework on the returns of another investor and let their investments follow.
Investments should still be monitored and not just assume that past performance will be repeated. Losses should be understood and accepted that this is all part of any investment. ImpetuousCopy Traders that constantly “jump ship” at the first loss will find it difficult to maintain performance.
What type of trader are you?
Trading takes time, patience and discipline please don’t hesitate to contact me on the openbook to answer any questions you may have. SteveHu
Disclaimer The analysis we provide is based on the average estimate of price movements in one day. Does not guarantee what we deliver is actually a proper and correct. Everything that happens in the decisions you make on your trading transaction is to be Your responsibilities.
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