To trade profitably, you need to have an effective trading strategy. The creation of a TS is a task that any trader will have to solve sooner or later. The main criterion is that the trading strategy should provide him with a stable income. It is on this, as a rule, that the work on the creation of the TS or the search for ready-made trading systems is based. But there is another criterion, which is not always given due attention. He is what I want to tell him today. This criterion is from the field of psychology. A trading strategy should be suitable for a trader, taking into account the characteristics of his character, habits, lifestyle. A trading strategy chosen in this way has a better chance of success.
There are many traders among the newcomers to the market who prefer scalping. But rarely does any of them ask the question: is this type of trading suitable for me? Scalping requires maximum concentration, quick reactions and decisions that have to be made literally within a few seconds. And if a trader is a phlegmatic person, and he prefers a calm, measured life, unhurried actions and decisions, then scalping is simply contraindicated for him. This type of trading will bring him losses and frustrations, regardless of the quality of the trading strategy. But medium-term or long-term trading may well become a successful way of making money for such a trader.
Psychological criteria for choosing a vehicle
In order to take into account the peculiarities of your character when choosing a trading strategy, you first need to ask yourself a few questions and honestly answer them. These can be, for example, such questions:
Am I an active person or a passive person?
Can I wait for a suitable situation for a long time to get what I want?
How violent do I react to a stressful situation?
Do I make quick decisions or do I prefer to think things over carefully?
Am I capable of decisive action, or do I prefer to take unhurried, measured steps towards my goal?
Am I a rational person, or do I make mostly intuitive decisions?
This list of questions can be continued. But even the answers to them will be enough to understand what type of trading strategy should be selected .
For example, traders with an analytical mindset should not be afraid to experiment when selecting a TS, introduce new ideas into it and thus optimize their trading. Traders who are dominated by intuitive decisions in life are better off not doing this. A trading strategy that includes a specific action plan is suitable for them, which must be strictly followed.
The selection of a strategy should be thoughtful not only from the point of view of its trading efficiency, but also from the point of view of its compliance with the character of a trader.