What is your trader type ?

Trader type ???????? ( now, what the hell is this )
Yes friends, trader type.

Its very important to know what type of trader u r before u start ur trading.Its exactly like knowing ur destination before u start a journey. Just like u start a journey u prepare a hell lot of you to make sure that the journey remains safe,pleasant and insulated from an unexpected accident. Same is the case in trading. But in a journey by chance if u meet some unfortunate accident, u might find some unexpected external help. But in trading my friend, under such conditions one and only one thing which is gonna help you or rather save you & that is ur own preparations. And to prepare yourself as a trader, u must know what type of trader you are.

Now, in share market, there remains as many type of traders, as you would find a dishes in a wedding menu. This consists of Scalpers, swing traders, momentum traders, investors, PE players, intraday traders, momentum traders, arbitrage players, value buyers, & many more. But its u and only u, who have to decide who you are.

The reason being you are starting your trading journey with the limited resources & moreover limited CAPITAL you have, in competition to the bunch of traders who are well equipped with their trading tools in hunt of your hard earned money.B coz money is the same, u cant be all type of traders with the limited capital u have. Under such condition( without setting yourself your trader type ) u end up losing your capital ( thus ur confidence ) bit by bit by bit trying to be a scalper, intra day trader, momentum trader, swing trader, bargain hunter at a same time. u want all the profits out there. So, first of all friends, know what your goal is...........

Now, let me introduce u with the tools a trader require on the trading battle field:

1. Broker - Not only cheaper brokerage rates but more than that our relations with our broker in case of a market swing againgst our leverage positions matter most.

2. Trading terminal - Faster & real time rate changes + quick & prompt services in case of a break up

3. P.C. - Faster & proper configurations

4. Telecommunications sources - Mobile, landline, ISP and quality of their services.

5. Power back up - Many a time a loss arise due to market swing against our positions during 30-60 minutes of a power break is more than the cost of a power back up equipment.

6. Charting tools - they must be easy to understand, renowned & highly reliable ( as our trading decisions are associated with them )

7. Source - u select for share market related news.

These all above being external factor there are some internal factors also which affects your trading style.

1. Your physical fitness ( it seems silly but mind u it matters )

2. Your frame of mind ( any doubt about this )

3. Your approach ( most important aspect )

4.-Discipline as a trader ( Your only saving grace in this jungle )

5.-Quality of the capital infused ( You must exactly know the strength of your capital, as its firmly believed that not only for investment but for trading purpose also only those portion of your capital should be used which is not required for a certain timeframe.)

6. Your risk apetite - Its a very old say " Its not important that how much u earn, but how much u r willing to loose."

I hope i have communicated my message appropriately before all of you , if not let me know through your comments so that i may improve in my coming posts and also if u would want me to change my way of expressing as my readers are whom for i am putting up my write ups.

In my next write up i would try to put some limelight on the importance of trading discipline, trading approach, till then HAPPY SAILING.

Dont forget to tune up every thursday morning for a wonderful Saibaba Bhajan right here.

SABKA MAALIK EK