What Defines A Trader

Discussion in 'Trading' started by sole, Jan 26, 2006.

  1. sole

    sole

    What sorts of characteristics define a trader's style? I can think of a few:
    • Average holding period
    • Risk tolerance
    • Conservative / aggressive
    Are there any others? I'm writing a paper about psychology and factors that go into defining a trader's style.

    Thanks.
     
  2. Probably it would be best to come up with a dichotomous key on about five levels to see how the possible styles form a spectrum.

    Your first bullet would give you a division like inter or intra day.

    A two part answer for the second bullet you posted would be difficult to handle. My guess is you are focussed on a small percentage of those who will be trading successfully. A trader would be a successful person and anyone who is only around to get to failure wouldn't be classified as a trader. The the styles of failing traders would be a much more diverse topic.

    The third bullet speaks for itself but you probably will discard it soon as other characteristics come to the fore.

    So you have one so far.

    Probably, styles are determined mostly by knowledge, skills and experience. To be successful, there isn't much that is limiting in terms of style.

    Tough paper to come up with.