Can you determine what type of trading animal you are or would like to be?
The animal kingdom is a large and an exciting one. But not dominated by any particular species of animal (humans aside). However there are some that do stand out from the rest. The quick thinkers, stoical under pressure or patient and wait for the right time to pounce. Whatever the skill there is a trading style to accommodate it. Here are the top 4 styles. Lets see which trading animal you are.
The Cheetah – Scalper
Fast, decisive, rapid attack and quick wins. Much like the cheetah a scalper does not stay in their positions very long. They see their opportunity, attack, and take the small win. Scalpers only tend to hold onto their positions for a few seconds possibly minutes and get out. Quick gains are their aim.
Scalpers live life in the fast lane. The more volatile the markets the more exhilarated they become. Being a cheetah means you are observant, instinctive, can read the trends and understand the market changes quickly enough to decide. You are a hunter with pinpoint accuracy. No opportunity gets away. But also forbearing when things don’t go your way.
The Golden Eagle – Day Trader
Armed with sharp talons, acute eyesight, a razor-sharp beak, and airborne speed advantage, the golden eagle is a feared predator in the animal kingdom. Like the cheetah, they are in and out. They don’t hang around to see what else they can eat. A day trader is a fast-paced trader and open several trades a day but will ensure they close all positions by the end of day so as not to hold on to trades overnight. This will limit the risk of any gains being wiped out by market news and sentiment.
Day traders will need to have acute vision for opportunity and be ready to swoop when an opportunity arises.
The Lion – Swing Trader
Above all its talents, patient, intuitiveness, certainty, are what make a lion a feared hunter. The lion can survive 14 days without food, so they can scour the land for the next big feed. Swing traders will make sure the technical data is aligned before pouncing. And much like the lion they are waiting for a one or two big feeds to wet their lips with. Usually holding on to trades for a few days and sometimes weeks, swing traders will ride the technical wave and wait for the market to swing the opposite way before exiting their trade.
The Grizzly – Position Trader
Position traders are in no rush to exit their trades. Much like a grizzly bear, they will gather their food in the warmer months and hibernate. Position traders will hold onto a trade for months and sometimes even years. They wait for the trade to come good and then exit.
Although strong willed and ferocious in their stance, position traders can end up holding onto a position longer than necessary. This is generally so they do not record a loss. The problem with that is you can miss out on several opportunities that will arise whilst holding onto an unrealised loss that may not swing your way for months or even years.
“Swing traders will make sure the technical data is aligned before pouncing”
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