Trading Style vs. Personality

Discussion in 'Psychology' started by runningman, Oct 19, 2007.

  1. How important is it to suit your trading style to your personality? For example, I would love to use a longer term trend following methodology, but I feel more comfortable in trades that are shorter term and contrarian in nature such as fading big moves and trading reversals. These are diametrically opposed to each other. Should I try to "force" myself into the trend following style- as I think its a sound method longer term, or go with what is most comfortable?
    Or should I try to use both in combination since one is short term and one longer term? Thanks in advance.
  2. You need to find a style that allows you to trade naturally.

    I struggled for the 1st two months when I first began trading, trying out different methods.

    I then found the style that fit my personality and refined it over the next several months.

    And now my trading is very comfortable.

    It should be like riding a bicycle or driving a car. Your mind shouldn't even have to think much. It's mostly instinctive.

    Of course, every now and then, you will get into an accident (sometimes even when it's not your fault), but these accidents are very rare for most riders/drivers.

  3. Adopt the trend-following plan on a much smaller scale so that it doesn't divert too much of your attention and focus from your shorter-term methods.