Every trader possesses a unique trading style, reflecting their psychological differences. The spectrum of trading styles includes the choice of currency pairs, time frames, indicators, margin settings, position duration, decisions regarding Stop Loss, and more. Psychologically, a trader's trading style reflects their mental state. While it requires observation of several trader examples, many believe that psychology plays a primary role in trading, with mastery of techniques contributing only about 10%.
There are various trading styles, ranging from aggressive to calm. Aggressive traders tend to transact quickly, utilize large margins, and set small profit targets. On the other hand, calmer traders opt for smaller margins with larger profit targets. Psychology plays a crucial role, and the positive impact of a positive attitude in decision-making in the market has been proven.
Patience is also a key to success in trading. Refraining from impulsive actions and sticking to the trading plan are challenges faced by many traders. The importance of patience is reinforced by the prudent use of margin, where some traders only use 1% of margin per position.
Meticulous observation of currency pair movements is essential, with some traders believing that their trading success is not only about mastering indicators but also about patience and precision in understanding market movements.
The diverse trading styles create diversity in the market. Traders can be aggressive with large margins and small targets or choose the opposite approach. They can also select volatile or more stable currency pairs. Whatever trading style is adopted, the most important thing is that the style fits the personality and preferences of each trader.
So, is there a best trading style? The answer is simple: the one that suits you best. Trading style is an expression of a trader's personality. By understanding trading style, we can clearly see the true personality of a trader.
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