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 trading. 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. 7. 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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