There are three main traders out there, each one has its perks and abilities and am wondering which one are you?
You may have never pondered on this however by working it out it actually may improve your own trading overall as well. Below are the main groups i see..
- The conservative trader, those that trade only when prices get to extreme levels and then decide from there. These sort of traders are happy trading a few good trades a month.. These sort of traders also always make income from trading as there discipline protects there own risk. As an example every month on each chart there is usually 3 to 4 good trades. If you fall into this category yourself then well done. It is better to risk more on less trades that are higher probability then to over trade and risk your whole account. These sort of traders are also usually very patient.
- The second type of trader is the aggressive trader, they will buy and sell regularly and there account will grow for a time, but these types of traders unless they manage risk tend to blow there account every few months. Why? Because they did not focus on risk management which is key in Forex. This can be done by hedging or using stop losses. They will either do high risk in general sort of trading or medium risk. These types of traders are the traders that are addicted to trading as well and at times they maybe building the account immensely. Now if they conserve there earnings along the way then these types of traders can make a living as well. Basically put take out profits out of account as it grows.
- The third type of trader is the risk trader, they do not so much know what in fact they are doing so they keep guessing and think that forex is a world of gambling. As an experienced trader myself this statement is not true at all, however by looking at forex like this then it actually does become like this. These sort of trader buy or sell anywhere and guess the market overall. these types of traders also only ever break even or lose money. These types of traders are the ones we all make money from. The gamblers and it is also good that they exist so that other traders like myself can consistently make money where they lose. A sad truth in forex is we make money from other peoples or banks losses. But hey, which side would you rather be on, the money making side or the losing side.