What Kind Of Trader Are You?
Most traders confuse themselves. They sit down at their desk with an idea. An idea that they hardly understand. You have to define what your trading goals are before you press buy or sell. Break down your strategy and figure out exactly what you are exploiting. Why does your strategy work? That is the question you must answer before you really begin to make money in the markets.
You can blow off this message as I did for the longest time. You will look at the MACD or maybe your trendlines and think that your trading strategy is bulletproof. How can you say something like that unless you have dug deep into the surface of your ideas and truly understand what you are doing when you push buy and sell.
Or you can embrace this message and take a step back. Go over your strategy and figure out the core concepts behind what you do. This will not only greatly enhance your faith in what you do (this is especially important when one experiences a string of losses), but it may also point out massive holes in your strategy that could have eventually cost you a lot of money.
Do yourself a favor and ponder these questions:
What kind of trader am I? Why do I make money in the market? Where is the logic in what I do?
If you can not answer those questions you are not ready to trade. I would say 98% of people trade without first being able to obtain the answers to the above quesitons… Which is an oddly familiar statistic…
