KNOW YOURSELF.docx 6 by alxalaa


									                                                 KNOW YOURSELF

                  KNOW YOURSELF
1.   THERE IS NO "ONE SIZE FITS ALL" best way to
     trade the markets. Some of us are better suited for
2.   short-term trading; others better for long-term
3.   One of the first and most important steps you, as a
     trader, must take in order to be successful is
4.   to know yourself. You must be realistic about what
     you can and cannot do. You must be aware
5.   of your ingrained conditioning as well as any strong
     personality traits. You must accept your
6.   tolerable risk levels as well as your profit desires. In
     other words, you must know yourself.
8.  If your objective were to become a professional
    athlete, the first step would be a realistic
9. assessment of physical traits and athletic abilities. If
    you are on the short and slow side, basketball
10. would be out of the question, regardless of personal
    desires. If you are on the frail and passive
11. side, then linebacker in the NFL would be
    unattainable, regardless of wishes. If you are on the
12. large and muscle-bound side, becoming a successful
    marathon runner would probably be out of
13. the question.The point is that regardless of what
    your or my personal desires might be, for us to
14. be successful we need to put realistic self-
    knowledge above personal desires.
15. The same is true when determining what type of
    trader you are best suited to be. Do a realistic
16. assessment   of yourself; know yourself. Some of us
    are best suited for long-term trading, others
17. for short-term trading. For example, long-term
    trading requires great patience and "deeper pockets"
18. (meaning having significantly more margin per
    contract since trades need to be given plenty of
19. room to work). While on the other hand, short-term
    trading does not require much in the way
20. of patience and can be done on a tighter "budget"
    (since stops can—and should—be fairly close].
21. Short-term trading involves significantly more
    decision making than long-term trading; therefore,
22. to do it well an individual must have a much greater
    tolerance for mistakes. Conversely, you
23. cannot expect to be a successful long-term trader if
    you are inclined to be quick to get out
24. whenever a trade moves somewhat against you.
    Additionally, you should not try to be a shortterm
25. trader if you have difficulty pulling the trigger on
    trades. The point is that different "time
26. styles" of trading require different personality traits
    and characteristics. Therefore, it is essential
27. to know yourself and then choose the time style of
    trading that best suits you, regardless of
28. which type of trader—short term or long term—you
    would like to be.

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