What Kind of Trader Are You?

 As is the usual, I have been analyzing myself as I learn new things and am presented with new situations or even the situations that I've had presented before and am dealing with as a new me and a slightly new way. I don't think that the knowledge is particularly new, but I've been giving it a little more though - What kind or trades am I more likely to make? That is, I've heard about buying into weakness or buying into strength, or the opposite of selling strength or weakness.  So I recently put all of my trades into Tradervue and it is very interesting to see what time of day that I do best and make more or lose more. Very interesting stuff. but I was going over my trades and I realized that I tend to be a buy into weakness, or sell into strength kind of guy. Right now, this is important to me, because it has shown me what I'm looking for and what I should actually be looking for to be playing reversals and backsides. Often I could see myself thinking, that's a huge drop it's going to rebound even if a little.  And it does. Ooor it doesn't. What really would happen is that it usually does and I gain confidence that this works, then out of nowhere when I'm feeling particularly good and up a ton on the month, I throw out a little extra risk and it doesn't work and instead of being a good trader and smashing out of the position, I would throw on more risk cuz I'm the shiz and my trades work. But they don't. And I would lose LOTS. but here's the thing, I don't think I would really handle the situation the right way even though I would bounce back, limit my sizing for a while and keep trading to kind of repeat the process. I would go over the trades but I don't think I was thinking about them quite the right way. I didn't know what I was getting into in the first place.  Kind of like say a blind date or something and I'm ready to get married before I even know the person. So I like the idea of being able to buy strength or sell weakness,  but I have to realize that my tendency is to do the opposite, so I should work with it.  I need to better identify when my setups are taking place rather than mass experimentation on anything that is making a big move. Create those variables that I need to see and then WAIT to see them. AND it never hurts to have a safety net. Stops are my friend. Anyway, more back testing, more solid identifiable variables, and correct sizing accordingly. Alright I think that's it for now. Do you trade buy or sell into weakness or strength? Have a great weekend or week or whatever it is when you read this. Cheers!

Comments

Popular Posts