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The day trader looks to exploit very short-term price movements. This style is characterized by speed, fast executions, small gains, and many trades. While day trading can be quite thrilling, it also produces high tension because this style produces many losses. It requires extreme focus and discipline, and generally requires full-time participation in the market. |
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For most people there is one strategy that will be right for them.Consider Warren Buffet. He is renowned as a long-term investor, characterized by his endless research, intimate knowledge of management and strategy, and his remarkable patience. He would be a terrible day trader! Choosing the right strategy for him was what made him successful. |
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This decision will be just as important for you. How do you decide the right strategy for you? You decide on a style that fits your personality, fits your motivation, helps you reach your trading goals, gives you a realistic chance at a profit, and feels right to you. |
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Your Style Must Fit Your Personality |
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Take the time to answer these questions: |
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What do I enjoy most about trading? |
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What do I find most interesting? |
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What do I find least interesting? |
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What are my greatest strengths as a trader? |
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What are my greatest weaknesses as a trader? |
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How much time and effort am I willing to commit to trading? |
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How much money am I willing to commit to the learning curve? |
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Do I want to trade by feel? |
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Do I want to trade with a mechanical system? |
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What does my ideal trading system look like to me? |
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Only you can answer these truthfully in order to decide what fits your personality. If you cannot stand fast action, don't be a day trader. If you need fast feedback, don't be a long-term trader. |
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