A. Sure, these are the three main types of traders that exist. And it’s important to find which style suits your trading personality best.
The first type is a ‘Scalper’. A scalper trader is someone who buys and sells a financial market a couple of times a day.
You can say, they scalp in and out of their trades in a single day. Normally, these traders trade on much shorter time frames from 1 minute, 5 minutes and up to 15 minute charts.
The second trader type is an ‘Intraday trader’.
An intraday trader is exactly that. It’s someone who uses any time frame but holds a trading position only in the day and NEVER overnight.
There are number of reasons for not wanting to hold a trade overnight including:
They don’t wish to pay incurring costs while they hold positions over night
They don’t want to go to sleep knowing the market can jump against them where they can lose more that what they expected.
There strategy works best during the designated hours they decide to trade.
Finally, there is a ‘Position trader’. This is what I am with Red Hot Storm Trader and Trader X is with Pickpocket Trader.
A position trader, is one who is happy to hold positions over a longer period of time. These type of traders lean more towards longer time frames such as 1 hour, 4 hours and daily.
Trader X and I are happy to be position traders as we can:
Take less trades in a week, and have time to do other things.
Not have to stress about closing a position at a certain time (as we have stop losses and take profits in place to take care of it for us).
Check the markets once a day or once every few days to see how the trade is performing.
This healthcare administrator is about to turn the entire sector on its head!
Get in now and you could double your money in the next12 months!
While Discovery Health might be the single largest medical aid in SA, another company takes the prize as the administrator that covers the most lives under its medical aid schemes in South Africa?
Its market share is actually BIGGER than Discovery. And between the two of them they hold nearly 80% of the market…
We’re talking 39.55% of the market share compared to Discovery’s 38.8%.
Its strategy is to own every part of the value chain…
It owns pharmacies, it delivers medicines directly to its clients, it owns a distributor and marketer of pharmaceutical products and brands, and it is also moving into the health insurance space as we speak.
What’s more – it’s grown revenue’s in double digits since 2015, and I believe the recent ‘lockdown’ could help double its share price - I’m talking 109% or more. Let’s take a closer look to see why…
Q. “Timon do you have some rules to calm the F** down after you take a loss! I have been following the 2% rule, but I still just hate taking losses when trading.”.
A. I can understand why you feel angry when you take a loss. It’s because we are brought up to win with everything we do. However, trading losses come with the territory.
You need to remember that us traders are NOT in the game to be right. We are in the game to follow a proven trading strategy (with winners and losers) and then the money will take care of itself in time.
Going back to your question for as you asked for ‘Calm the F** down rules’. Yes I have a 6 step plan to calm myself whenever I take a loss.
Close your eyes
Take 10 deep breaths in and out
Think about your winning trading strategy
Ask yourself why you are angry when the strategy comes with losses
Say “It’s only 2% of my portfolio that I’ve lost, and my winning trading strategy will make up for any petty loss in the medium run”
Tell yourself “I’m going to follow the strategy as I should and I will not be another losing statistic”
It worked for me for over a decade and I’m sure it will help you feel a little calmer and at ease after you take a loss…
Analyst, Red Hot Storm Trader