New Trader, Know Thyself

Matching trading style to your emotional world is important for long-term survival on the market - it is nothing to do with pure financial effectiveness. In other words - it defines weather you will turn into wealthy wreck in 3 years, or you will enjoy steady and nice growth of your wealth next 10 years prudently using the high-risk derivatives market.

Ah, so it's adapt yourself to what works and not the other way around. I'd say experiment and do more of what works and less what doesn't work for you. No use in making big bucks when you're a drained neurotic at the end of the day eh? You can't take money to the grave anyway.

Very nice said, indeed!

That was good! :-)

Good article, agree with most of the content except the 'adapt your trading style to fit your personality' myth. The % of retail traders who have success trading off lower TFs including what is erroneously referred to as scalping is statistically negligible. The higher up the TFs the greater the chance of success. Most retail traders would be best adapting their personality to fit what works not attempting to find a curve fit for their market perceptions.

I disagree, the market is constant and unbending to the distinct personality traits of an individual. The majority of retail traders should trade off frames no lower than the daily, aiming for 1-2% growth per week. However, most come badly capitalised, chasing dreams believing they can beat the cast iron 'laws' of probability. Most are badly wired for the job. Therefore they should re boot their system and adapt their character and personality to fit the market.

Interesting reading. I trade according to my bankroll - no trade bigger than 1% of my total balance, and finding a system which works and keep plugging away. I know my emotions have got into play when I was trading larger amounts and had a bad day, so would rather gradually raise my bank balance and be more on an even keel emotionally.

Correct, and if you adapt to the higher time frames with more realistic ambitions, think maximum 1-2% growth per week consistently, then you'll be less "neurotic". However, when folk approach this industry wanting to earn a wage from a $10,000 account they're making the first critical error. With that account size you're more likely to make $500 a month and only that once you are skilled, which could take circa 4 years of full time effort. $1000 return per month (10%) would be spectacular. But the retail industry doesn't want to tell you that, it (they) want you to believe in the dream that you can turn your $1000 into $100,000.

The biggest barrier to success in this side of the industry is unrealistic expectations, fuelled by a lot of very poor marketeers selling snake oil.

nice article...keep it up