Wave: How You Can Make Yourself a Better Trader - Define Yourself: What
Kind of Trader Are You?
The idea of being a successful trader is exciting. The reality of
becoming one is another thing. You need to understand more than the
markets -- you need to understand yourself.
EWI's Senior Analyst Jeffrey Kennedy knows what it takes. He has
analyzed and traded the markets for over 15 years. Jeffrey has learned
what it takes to be successful, and he has the discipline to apply that
knowledge. Enjoy this excerpt from his free Club EWI eBook Best of
Traders Classroom, in which he answers: What kind of trader am I?
As a trader, it is imperative that you
define your approach to the markets. For instance, do you follow the
trend or do you like to play breakouts? Are you a commodity trader or
an index trader at heart? What's your trading time frame, five minutes
or five weeks? Moreover, how do you analyze markets, fundamentally or
technically? Do you prefer using a black box type trading system or
making your own calls?
My trading style is to trade with the
trend. Specifically, I like to buy pullbacks in uptrends and sell
bounces in downtrends. My markets are commodities, and my time frame is
three to five days. If I catch a trade that has some legs to it, and it
lasts a little longer, that's fine with me. Bottom line, though, I'm a
take-the-money-and-run kind of guy. This is who I am as a trader.
In addition to the Wave Principle, I
include basic chart reading and bar patterns in my analysis. While I do
use a few select technical studies in arriving at my decisions, I have
always believed that "price" is the ultimate indicator and that
everything else is secondary.
Remember, success in trading comes
from the consistent application of a proven methodology. If you don't
define your methodology, then your trading style could change with each
new issue of Stocks and Commodities magazine. Trying a variety of
analytical techniques rather than consistently following one is a
problem for traders, and it's also a great way to lose your trading
Read more of Jeffrey's lessons in his free
45-page eBook: The Best of Trader's Classroom. This valuable eBook,
adapted from the $189 set of the same name, offers the 14 most
actionable lessons every trader should know.
your free eBook now.
article was syndicated by Elliott Wave International and was originally
published under the headline How
You Can Make Yourself a Better Trader. EWI is
the world's largest market forecasting firm. Its staff of full-time
analysts led by Chartered Market Technician Robert Prechter provides
24-hour-a-day market analysis to institutional and private investors
around the world.