What type of trader are you? No, I am not referring to intraday or long term but more about how you handle trading in general. Below I describe three types of traders — see which one fits you.
What Type of Trader Are You – Trader #1
Trader # 1 buys the full package but, with the wealth of information, he quickly becomes overwhelm. He realizes instantly that he needs to consume the material in small bits. So he focuses on something small (like learning price bars) and incorporates that with what he already knows and understands about the markets. He isn’t scared to take profits very quickly and minimizes his losses whenever possible. His winning percentage is high because he understands that his job is to take profits when they are offered. By taking profits early, he is building up his confidence in reading his charts and implementing a sound trading plan. He realizes that his major problem is identifying the trade setup early so he subscribes to the binary signals but realizes they are only an alert that the trade may be setting up. Then he uses his charting platform to filter the potential setups.
What Type of Trader Are You – Trader #2
Trade #2 is an excellent chart reader and can identify support and resistance using a multiple timeframe approach very easily. However, he did not take the time to develop a trading plan and, quite often, overtrades or, after a losing trade, finds that he wants revenge for the market taking his money. The plus side is that he recognizes this behavior. He forms a trading plan, limits the number of trades he can take in a day, and identifies ways to prevent his revenge behavior. He also realizes that his job as a trader is to take profit and minimize his losses. Therefore, when he sees a profit on the table and believes the market may go against him in the near future, he takes it. He also keeps any losses very small so he can overcome them. He opts to have a mentor to help him overcome the obstacles he is facing — which currently are more psychological rather than based on technical analysis.
What Type of Trader Are You – Trader #3
Trader #3 is a new trader and signs up for the binary signals. They do not understand anything about binary options, they do not watch the multitude of videos available on the binary options, and they have no idea what an ITM, ATM or OTM is. They don’t understand the binary option expirations (time component) and they have no additional means of displaying a chart. In other words, they are trading blind. While they could have learned via the numerous free videos available on both the blog and GailMercerBinarySignals, they opt to quit in less than 24 hours because there was no instant gratification (reward).
Traders come in all shapes and sizes (so to speak) but the ones that typical prevail will be the ones that do a self-assessment.
Notice how Trader #1 realizes that he is overwhelmed and backs up a little. He opts to take everything in small doses but the one thing that really sticks with him is that his job is to “take profits when the market offers them”. As he quoted, I have done a great job on drilling that in his head.
Trader #2 knows he has an issue and opts for mentoring because he really wants this to work. What he didn’t realize initially was that he is a very good chartist (person who reads charts). It didn’t matter that he didn’t use the THD indicators because he understands his indicators extremely well and as they are built on support and resistance. Instead of spending time on reading charts, our mentoring focuses on developing a trading plan, trading journal, and psychological aspects of trading. Although his obstacles are just as hard as Trader #1, he is taking responsibility and forming ways to hold himself accountable for the psychological issues that are preventing him from becoming the trader he wants to be.
Trader #3 expected instant gratification and did not receive it. They have no experience and knowledge of the business and they refused to take advantage of all the free resources available to them. The best thing they could have done was quitting because, otherwise, they are likely to lose even more money. Trading is a hard and if you are not willing to learn and face your own demons, quitting is really the best option. Choosing another hobby is more beneficial than continuing in trading.