Knowledge of good technical or fundamental analysis isn’t what makes most traders successful. Most can learn this quite well in a short period of time.

The ones that are successful master their emotions.

One of the most important things for the average retail trader to come to terms with is this very question. Here’s what you should ask yourself about the kind of trader you are. Once you determine this, it will be easier for you to decide how and when you trade and the style of trading you do.

1. Do you prefer to follow the trend or are you always looking for tops and bottoms (Reversals)?
2. What time horizon do you want to be in and out of trades in? 15 minutes, 4 hours, 4 days, 4 weeks?
3. How do you feel during periods of draw-downs? Does the amount matter when you are negative?
4. AND most importantly try to determine you biggest character flaw. Such as; Impatients, Competitiveness, Righteousness, Etc…

It may seem obvious to most as you read this that this seems to be ridiculously basic. The truth is that most retail traders don’t take the time to put the basics in place. Trade in a way that best suits your personality and creates the least amount of anxiety for you. You need to create success to create more success.

As you become successful at what works best for you, then start pushing the boundaries as you learn to manage your anxiety.

BTW. I used to think that I enjoyed being right or correct. The truth is my ego hates to be wrong. So my personal system is finding tops and bottoms so that I have only one choice to make on where my stop-loss goes. Otherwise, I end up thinking I should have known better on where the stop belonged.

The next psychology piece I will offer in an upcoming blog will be: How to keep from beating yourself up over losses or mistakes.

Cheers and good trading