Would you trust your pension fund to a short-term trader – a lover of risk and trades?? Think, that the answer of most people to this question would be negative. Of course, we would prefer a risk averse, a rational-minded long-term stock manager, than a stereotypical short-term speculator. Safe investment with low risk is what, what most people need, who want to get a penny in old age. Many financial advisors advise their clients to avoid risky investments.: “Don't look for high-risk investments, regardless of whether, what profit potential they promise you ". Investing doesn't have to be boring - that's what most fund managers think..
Certainly, there is no single correct trading method, therefore, in no case should you criticize this or that style of trading or investing. I'll be honest : I would like to think, what a cautious fund manager is looking at my retirement fund. But , when it comes to short-term trading in the markets, trader unlikely to be like people, which were burned in boiling water, blowing on cold water. Take the next heaven test, and you will understand what, I speak.
The elite, how much this or that judgment complies with you:
1) I don't like dealing with unforeseen events..
2) I never let my instincts or intuition influence my trading decisions..
3) I prefer to take the mother of decisions, based on logic, and not on feelings.
4) I prefer predictable situations.
5) I avoid accidents.
6) I would like to make safe deals.
7). In my ideal world, i would never risk.
8). Safety is paramount.
For each positive answer, charge yourself 1 point, for each negative 0.
How many points did you score?
We have tested this questionnaire against several hundred practicing traders.. Where are you? If you have typed 2 or less points, then you are part of the largest group of traders. Less 50 % of respondents collected the same points. Wherein 25 % respondents recruited 1 or 0 points. And only less 1 % traders recruited 8 points! It becomes clear, that practicing speculators are alien to the idea of "safe" transactions. They catch chances and play on their intuition.. They don't mind uncertainty and trust their instincts.. Their mentality is not like the thinking style of conservatives., reliable fund managers, is not it?
If you chose the short term trading style, the pursuit of safety can play a cruel joke on you. Traders, who scored a large number of points, often experience stress and negative emotions, when they trade the markets. Their confidence is easily undermined., they often question their investment decisions.
One side, short-term trading style is not designed for those, who prefers safety, but on the other hand you have no reason, to look for risks on your own head and specifically make dangerous investments. Meanwhile, many short term traders are risk averse. That's why, most trading books praise virtuous discipline. If you are looking for risk and uncertainty, then you, probably, wrong person, who controls his instincts tightly. Sometimes it can be very helpful to lose some control over yourself and trust instincts.. If you can take risk and uncertainty with confidence, you have the temperament of a successful player. But you shouldn't overuse impulsive decisions.. If you want to make a profit in the long run, it is very important to have a trading plan, and disciplined to follow it.
