Saturday, September 26, 2009

Weekend read - Day Trading - A reflection of personality

Over the years, I have interacted with many day traders. Most of them (well successful ones atleast) seem to have a routine.


They all seem to know one thing. This is the stock/list of stocks they am going to trade next day. I know of people who take position at 10 am and hold on to it (assuming its


a winning position) till 3.30. They dont switch from one stock to another like buzzing bees.


Talk of buzzing bees, i also know some people who switch 7 to 8 stocks during the day making 1% in one and movin on to the next.


Some of them are extremely successful. There are some other people, who seem to know all about news based stock moves. They seem to have


perfect knowledge on how a stock will react to positive\negative news.


As a day trader, what should i be doing?? I think day trading is a direct reflection of one's personality. Your style of trading reflects what sort


of a person you are in real life. When your style of trading matches with your persona, you will find one of two things. Either you will be enormously successful or


you will be losing money on every single trade. The point i am trying to make here is, when you reflect upon a day's trade always ask yourself, is the trade according


to my personality. However do keep in mind that there is ALWAYS scope for improvement in both facets - your trading style and your persona.


All the very best


Jerry

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