Friday, 24 April 2009

Am I a long term or short term trader?

Today I had a moment of clarity. One of those penny-dropping moments that suddenly makes things clearer.

As you know, if you've been following AtticManTrader, I have been trying to move away from shorter, swing trading time frames and develop into something of a longer term trader. The reason for this was pretty simple - my lifestyle doesn't suit me constantly looking at the charts during the day.

However, as I begin to further understand myself as a trader, I realise that the constant interaction I have with the charts during the day 'suits my personality' as a trader. The fact it doesn't necessarily 'suit my lifestyle' is the reason I was trying to step up to longer time frames.

However, finding a system that suits your personality is one of the keys to success. Therefore I have a dilemma. My personality is geared toward constant interaction with the market, but my lifestyle prevents me from doing this effectively.

Today, during my penny dropping moment, I thought of a solution.

Do both!

I will continue to trade on a swing term basis to satisfy my 'trading personality'. I will have however, reduce my position size so that I'm not looking at the charts with the same mindset. If these trades lose, it will not affect my mindset. I will then (using a separate account), continue to develop longer term trades. This account I will NOT look at during the day!

This solution should satisfy both sides of my trading personna! Anyhow thats the plan! I'll keep you informed!
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