How do you find a trading style that suits your personality?

Once you find a trading style that suits your personality, trading becomes less stressful and enjoyable.

Your personality defines who you are, what you like and how react to certain things.

To make a realistic trading plan, you have to start by knowing who you are.

Knowing your personalty is key when it comes to forex trading.

For example, what is your level of patience, attitude towards risk, schedule of work to mention but a few.

This will give you the general description of who you are after all you will be the one to trade the plan.

Who you are as a trader define what kind of method that suits you.

Below we shall discuss some of the ways that can help you to find a trading style that suits your personality.

Ways to find a trading style that suits your personality

1. Self study.

This is the most important of them all. One of the ways to make things work is to first find yourself.

Finding a true you is very important when it comes to finding a trading style that suits your personality.

This is because you know yourself better than anyone therefore you can tell what you can do and cannot do.

 If you can find out what your own strength and weaknesses are, risk appetite,  your degree of patience and your personal daily schedule, then you can tell the kind of trader you want to be.

Just be honest with yourself and the truth shall set you free.

Knowing who you are, will help you choose the trading strategy and a system that suits your personal style and this will increase your chances of success.

2. Identify favorable market environment & time frames.

If you are a kind who likes trading breakouts and reversals on a small time frame. Ranging markets would suit you better.

However, if you are a swing trader or position trader, you should go for trending markets.

Once you define the market environment for your strategy, you won’t find trouble to choose the correct pairs for your trading style and the right time frame.

Also, if you can define your trading market environment and the currency pairs to trade, then you can find  right market session.

Some of the check-list questions you should consider.

• What kind of trader do you want to be? Day trader? Night trader? swing trader or a scalper?
• Why & What is your motive to be a trader?
• Are you doing it because your friends are doing it?
• Did someone tell you it is the simplest way to get rich?
• Is it a way you can find pleasure or you just want to take up a challenge?

Every one has got their different opinions about the above questions and your answers may lead you to want you want to know.

If you can answer all the questions correctly, then you are a step a head to finding your own trading style.

Finding something that motivates to trade is one way you can keep the discipline and consistence with the market. It will also help you to identify your strength and interests as a trader.

3. Your trading goals:

You should also look at how much you expect to get when you use your trading plan.  Your expected return.

Your trading goals should have both long-term and short-term targets.

This way, you cant measure the performance of your system and define how much effort you have to put to it to reach your set goal.

When you trade with a goal, you focus. That’s how much you want to achieve it.

How do I set Goals?

Set goals that are SMART.

Be more specific while setting your goals. For example,

• Main goal is: I want to achieve at least 95% end of year
• According to my strategy, it is to take at least 5 trades per week; winning at most 3 of them with a risk reward of 1:3.
• It will make minimum 30% every end of month
• I must follow only my trading plan if am to achieve the main goal

The percentage returns and number of trades differ with every trading system. What is important is to note down a specific return you want to make on your investment.

Writing your goals down makes your trading easy and enjoyable. Your set goals should be SMART.

For instance if I say I need to grow my account to $1million dollar.

It is specific, measurable but the question is, Is it attainable? And how much time do you need to achieve your goal?   Have goals that are specific, measurable, attainable, realistic and time-bound.

4. What is your risk capital?

How much are you willing/can afford to lose?

Forex trading is very risky venture especially if you have no risk management plan.

If you can afford to trade, are you willing to accept a loss? How much money are you willing to expose to risk and you can take in the results? Can you lose that money and stay put?

Your risk capital should be that money that you can lose and your life stays the same.

Forex trading is not a quick money scheme, nor is it a safe haven. But if you do good risk and money management, it is a very profitable business.

Risk only what you can afford to lose

Don’t take a loan to do forex  trading expecting to make the money immediately and pay back.

You will only put your heart at a verge of getting pressure.

In the forex market,

It is easy to get tempted. While making your trading decisions; you may somehow get convinced that with your outstanding strategy you can have the money back within a short time.

Don’t forget that you are dealing with a probability venture, it’s either a profit or a loss. So it is possible that you can also lose the money.

Risk only that you can afford to lose. Only that. Until you get that money, do demo trading and keep saving until you get what is enough to start trading.