This article provides you with a practical tool to help you to find the trading style that fits your personality, lifestyle and risk profile. A good and well considered choice of a strategy is de foundation of your trading success. It is very important that you feel comfortable with your chosen path in order to be able to trade in a disciplined and controlled way.
#Some questions that will help you to choose your path
You will find a set of questions that you can use to get a first impression of what trading style would fit you the best. Answer all questions with yes or no and make sure that you have only one "yes" per block of questions.
Can you spend 15 minutes a day on trading?Can you monitor you trades during 30 minutes to 2 hours in a row?Can you check your trades several times a day?Can you fund your account with a minimum of 1000$ on a micro account?Can you fund your account with a minimum of 300$ on a micro account?Do you want to see quick but small results on a daily basis?Is it important to you that the trade closes the same day before you go to sleep?Are you patient and can you wait if it results in a much bigger profit?Are you a calm person, even when you have to act quickly?Do you need a lot of time in order to make a decision?Can you make a fairly quick decision, when there is a little time pressure?Are you comfortable with controlled risk?Do you need to have control over the process all the time?Can you accept risk if you can follow up closely?
#How to interpret your results
st = swing trade
it = intraday trade
sc = scalping
01: yes = 1 point for st, others 0 points
02: yes = 1 point for sc, others 0 points
03: yes = 1 point for st and it, sc 0 points
04: yes = 1 point for st, others 0 points
05: yes = 1 point for it and sc, swing trade 0 points
06: yes = 1 point for sc, others 0 points
07: yes = 1 point for it, others 0 points
08: yes = 1 point for st, others 0 points
09: yes = 1 point for scalping, others 0 points
10: yes = 1 point for it, others 0 points
11: yes = 1 point for st, others 0 points
12: yes = 1 point for st, others 0 points
13: yes = 1 point for sc, others 0 points
14: yes = 1 point for it, others 0 points
Make a total per trading style. The style with the highest quote is likely your preferred trading style.
Consider the results of this little quiz as an indication and a starting point. When you have a rough idea about the path you want to choose, you can fine tune it or consider a combination of two trading styles. This test is not a guarantee of trading success and be always aware that trading is not for everyone and that it involves risk and that you never should trade with money you cannot afford to lose.
Know that a combination of trading styles can be your unique path too. Consider this option if it applies to your goals and lifestyle. If you are new to forex, I would advise to invest first in one trading strategy before moving to a second one.
To your trading success!
Trading is like driving a car. When you know how to do is, it's childs play. It is a natural set of actions. But, when you have not learned how to drive properly, it can become dangerous. The same applies to forex trading. This is why I started a forex currency trading blog with tools and tips that will help you to build a good trading toolbox.
Visit my blog at http://www.myforextoolsonline.com/
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