DirectorAnnie
DirectorAnnie
10-13 12:48
Your trading style should match your personality. Don’t force yourself to imitate someone else’s methods, or you won’t make money.

A few self-assessment questions to help you find the trading style that suits you:

1. Can you sleep when your position is down 20%? Do you need to check the market every day to feel at ease?
Can sleep and don’t like watching the market constantly → Low-frequency swing trading and fundamental-based positions
Can’t sleep → Suited to quick in-and-out trades or not holding positions at all

2. After five consecutive losing trades, is your first reaction to add to the position and average down, open a revenge trade, or stop and review?
Add to the position and average down → Use a rule-based systematic trading approach to take subjective decision-making out of your hands
Stop and review → Discretionary style

3. Does missing a major rally hurt more, or does getting stuck in a losing position hurt more?
Regret missing a market move → Right-side trend-following style
Afraid of getting stuck in a losing position → Left-side dip buying, scaling into positions, and strict stop-loss style

4. Do you prefer researching financial statements and industry chains, or watching the order book and relying on market feel?
Research-driven → Fundamental and event-driven
Market feel → Short-term trading

5. How much time can you invest each week?
Limited time → Don’t do intraday trading; use dollar-cost averaging + low-frequency rebalancing + trend following

Your personality determines how you make money!
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