What Type of Trader Are You? The First Step to Trading Successfully

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Can You Answer This Question: “What Type of Trader Are You?”

This is the first question you must answer if you want to be profitable on Wall Street. There’s no “one size fits all” strategy out there. In fact, there are tons of different opportunities in the market, which can seem daunting to beginners.

Stocks, bonds, options, long positions, short positions, day trading, swing trading, long-term value investing, etc. — the choice is yours. It’s important that you narrow down your focus in order to excel at one or two things, as opposed to simply dabbling or being decent at a bunch of different things.

In order to do so, you need to take your lifestyle into consideration, think about your availability during market hours, the types of returns you’d like to see on your investments, and ultimately decide what type of strategy would work best for you. A knowledgeable, disciplined trader with a well-defined strategy is what you’re seeking to become.

Are You a Full-Time or Part-Time Trader?

Are you currently, or aspire to be, a full-time trader? Available every minute of the day during market hours to monitor your trades. Constantly watching price-action in real-time, studying market depth, and researching opportunities through news outlets.

Or are you currently, or aspire to be, a part-time trader? A busy professional with limited access and time to watch your trades. Only looking to pursue 1 or 2 trades a week for a decent side income by year’s end. A more passive approach while you pursue other opportunities during market hours.

So, What Type of Trader Are You? Here Are Some Options:

Short-Term

Day Trader: Seeking very quick profits, typically buying and selling a position within the same day for 5-20% profit. These people have the time to watch their trades move tick-by-tick. They have the availability to sit in a chat room all day with fellow scalp traders, ready to react at the drop of a dime. Day trading is an aggressive approach for trigger-happy traders, and also the most volatile. Profits can be made quickly and be highly rewarding, but at the same rate, losses can add up just as fast. This brand of trading can be disastrous if trades are left unwatched.

Swing Trader: Traders who fall into this category buy a stock with the thought of holding for a couple days, sometimes up to a week, but if they see their 5-20% profit within a day, they may take it. They usually have the time to check-in on their trades a few times throughout the day, but don’t feel as though they need to be chained to their computers. They may occasionally find the time to socialize and share trading ideas in a chat room, but for the most part their time is sparse during market hours.

Long-Term

Swing Long Trader: Still seeking 5-20% profit, but the idea is to find stocks that move much slower without knee-jerk reactions.  Hold times can typically range from a week to a month. These types of traders can be lawyers, doctors, businessmen, etc. not available at all during market hours, and can only check-in on their trades at the end of the day or every few days. This type of approach requires flexible entries & exits, slower movements,  and longer hold times in order to appeal to busy professionals.

Value Investors: This is your classic “buy-and-hold” approach in which investments are chosen and held for a year or more. These people are not looking for stocks with short-term momentum, but rather strong fundamentals that will carry the stock up over long periods of time. They’re in it for the long haul and ride out every move in the market, up or down. They’re typically taking positions in high-quality, blue chip stocks that will provide slow and steady returns over time. Every quarter, 6 months, or year, they will review their portfolio’s performance and make any necessary changes.

**It’s up to you whether or not you want to choose just one or multiple approaches, and sometimes there’s even some overlap between the options mentioned above, but you want to be careful not to spread yourself too thin as a beginner. Keep in mind that your ideal trading style matters quite a bit when it comes to choosing an approach for educating yourself, and ultimately the trades you will be able to comfortably make based on your availability, desire to manage your trades, and profit goals.**

Real-Time Alerts, Daily Watch Lists, Video Lessons, and Chat Rooms – How Can They Benefit You?

Taking Jason Bond Picks or Top Stock Picks for example, they both offer alerts, watch lists, video lessons, chat rooms, webinars, special reports, and more. Obviously, there’s a lot of value in all of these offerings, but depending on what type of trader you are, some aspects may be much more beneficial than others.

As a full-time trader, the chat room can be your educational and profitable playground. If your daily schedule allows you to sit at your computer all day and monitor the market, you can do so with a team of expert traders that have your back. Sharing their trade ideas with the group, providing live lessons when necessary, and scalping quick wins all day long. The action can be fast and furious, but you can find comfort in the fact that you’re not alone. You have a team of experienced traders at your disposal for guidance.

Professional Trading Chat Rooms:

Advantages

1. Tons of Trade Ideas Shared
2. High Volatility (Perfect For Trigger-Happy Day Traders)
3. Several Experienced Moderators & Professional Traders Available
4. A Feeling of Community (It Can Be Dangerous to Trade Alone. We All Have Blind Spots)
5. Live Lessons as Opportunities Present Themselves

Disadvantages

1. Fast-Paced & Overwhelming For Beginners
2. Not Ideal For Busy Professionals Distracted By Their Full-Time Jobs
3. High Volatility Can Be a Bad Thing If You’re Unable to Monitor Your Trades

Are You a Busy Professional With Limited Time And Access?

If you consider yourself a part of this category, then it’s clear you can’t count on a chat room for learning like a full-time trader could. With that being the case, you must be able to educate yourself in other ways. This is where a library of expert video lessons, recorded webinars, detailed daily watch lists, and real-time text and email alerts can contribute to your success as a part-time trader. You can’t participate as much as a full-time trader would be able to during market hours, but it’s still possible to attain profits. And you can rest assured knowing that there are services available out there to help you achieve your goals.

Every Trader Has Their Own Trading Identity:

Do me a favor and take some time to consider the question: What Kind of Trader Are You? Once you’ve decided, you can then focus on an educational platform that embraces your ideal approach and use each facet of the service to your advantage.

Written by Matt Thomas