Stock Trading Personality

Everyone has a different personality.  So it makes sense that everyone has a different stock trading personality.  Some people trade very aggressively and like to go after the short term movements.  Some people are less aggressive and like to ride the longer term trends.

Finding your trading style is very important.  If you try to be too aggressive and your personality isn’t the same you might get too stressed out to make good decisions.  On the other hand if you are very aggressive and are trying to trade long term trends you could end up getting bored with the market and stop trading all together.

Trading on the same ground as your personality will help you want to stay in the market and learn from your mistakes.  And learning from your mistakes is the only way to succeed in the stock market.

When you are developing your own strategy there are a few questions you should ask yourself.

1.       What time frame do I want to trade?  Are you willing to sit by your computer for an hour a day placing trades and exiting them? Do you want to ride a stocks trend for several months? Do you want to just buy strong companies and not have to worry about it again for 20 or 30 years?

2.       What do you want to trade?  There are stocks, ETFs, currencies, and commodities.  Do you want to specialize in 1 area or spread out into different areas?

3.       Do you want to trade options? Perhaps you want to invest in short term options which allow you to make higher returns, but also force you to trade shorter timeframes.  Maybe you just want to use them to sell covered calls on your stocks.

Once you have answered these questions you will have a better understanding of how you should approach the market.