Winning Edge Trading: Successful and Profitable Short- and Long-Term Trading Systems and Strategies

CHAPTER 14

Trading Psychology and Your Trading Personality Profile

In the previous chapters, we discussed the changing face of financial markets and showed you how you could benefit from these changes. The current market volatility should provide you with some great trading opportunities. To help you profit and become a successful trader, I presented a simple but powerful trading system for trading equity and futures markets. Furthermore, due to the system’s robust structure and sound market model, you can trade using your preferred trading style, whether day, swing, or position trading. Indeed, to become a successful trader you need to have a dynamic and profitable trading system that is able to generate buy and sell signals in all market conditions with a high probability of winning trades. However, a winning system by itself does not and cannot make you successful. As good as a trading system might be, it ultimately needs an operator to execute its recommendations.

TWO PILLARS OF SUCCESSFUL TRADING

In this chapter, we examine the two determinant factors that could help you become a successful trader. They are a sound trading system and a fit trading psychology. Furthermore, we review the psychological aspect of trading and provide you with a test to determine your trading style: short term, intermediate, or long term. We’ll also discuss suitable trading systems—discretionary, mechanical, or hybrid system—for each trading style. Through taking the personality test, you will ...