Understanding your niche in trading
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    Understanding your niche in trading

    Hi there!

    Have you thought about this thing – do you consciously understand what is your best niche in trading?
    We are all different people. We process information in different ways. The only way to sustain ongoing learning process is to find trading niche that suits your personality.

    They say – talent is the key for success. I would say – the key to success is «talent + environment».
    To become master trader, you need to process huge amount of information, master all nuances and details of price action before you obtain intuitive skills. This is hard work, but it absolutely doesn’t feel like work if you’re doing something interesting and emotionally rewarding. This occurs when your natural abilities to process information are involved. Our learning curve accelerates significantly if we are operating inside our niche.

    I will share with you small check-list that will help you better understand what your trading niche is.


    Consider answering simple questions:


    Do I make tend to make decisions by analyzing data or by «gut feel»?


    It’s not even about decision making process in trading, it’s about life in whole. For example, how you decide – what car or computer to purchase? Do you patiently explore feedback from some special internet resources? Or you just follow your impulse and pick what you «feel» is good?
    It’s nothing wrong about that. This is how we process information and each of us has dominating style of perception as well as reaction to outside information.

    In trading, «gut feelers» will be better at pattern recognition. Price action trading is not a science - from time to time, market creates short-term imbalances and elusive opportunities that can’t be recognized by traditional technical analysis – there’s no way to measure «aggressiveness» of the market or «lack of conviction». Yet people with strong gut feel and intuition can read price action quite effectively. Their learning curve accelerates when they start master some patterns and setups observing nuances and details of limited number of setups. You can hear from this type of trader: «Here market is strong, here market is weak» - that’s how they view things, they will not be able to explain it. «It’s just obvious» - you will hear from them, after you will ask them to explain their best trades.

    Other traders will need research and solid rationale beyond their trading decisions. They will be more capable to deal with building trading systems, measuring and optimizing parameters, dealing with statistics and so on.

    For example, I tend to be more «gut feeler» (though I have solid trading approach, once (several years ago) I was trying to master some «mechanical trading systems» under supervision of experienced trader. It was a complete disaster, I’ve done a lot of mistakes, was emotionally sucked out and lost significant amount of money. It was tough lesson for me – I had to switch back to my preferred trading style and master it. Then, things have become fine.

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    Am I searching for stimulus or avoid it?

    Also, we should understand – to we tend to be risk-averse or risk-takers? Do we like to put our money on the line every day or avoid «noise»?

    Risk-averse people will be more conservative in daily routine. They will choose the same routes, food and actions thus avoiding unexpected events.
    Risk takers tend to be more extravert, they want action and they will simply have tough times watching their paper profit back and forth. Long term trading is not for them. They would probably do better in short-term trading or day trading.

    Risk-averse people will do better in swing trading on longer timeframes or employing spread trading strategies (to lower risk).

    Of course, it's not that simple - in realuty we should have some form of balance between gut feel and research, action and "sitting on our hands".

    But if we understand our dominating style of processing information and making decisions, we will not have problems with discipline.


    So, what is your trading niche?

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    Last edited by Value trader; 09-25-2013 at 02:41 PM.

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    I understand your point, it is indeed very important for every trader to discover the method and style of trading that suits them and not just try to copy other peoples trading style. As for me i prefer scalping as i dont have too much patitence to trade longterm. All i need is just 10-20pips daily through my safe scalping method

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    Registered user dkarev's Avatar
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    well the best place to learn about trading niche is the demo account,trading the demo will help us understand the kinda niche we are using and the best time to use on it,i guess the major reason why we have some trader failing in this business is because they dont understand their trading niche

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    Yes! We all should understand and discover about our niche in trading. This is same like discovering your strengths and weaknesses in this business. The more you know your strenghts and weaknesses, that means the more you are improving day by day and the more good you can become . So we all must know and understand about our niche first in trading. Then we can easily get success. This is what i believe.

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    Yeah, I suggest that one shouldn't bet significant money on his trading before he finds his trading niche.
    Demo can be used in this phase, why not?

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    Quote Originally Posted by Value trader View Post
    Yeah, I suggest that one shouldn't bet significant money on his trading before he finds his trading niche.
    Demo can be used in this phase, why not?
    Yes! My friend! Demo trading comes here the best to discover your own niche . First of all, it is free . THat is we dont have to invest. And even if we loose , our personal investment is not effected. So we can trade without emotions too. This will really help to understand our niche and discover our weakness and strengths as well. And in this way, we can find out our suitable trading style too.

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    Yes every trader have to understand which type of trading is suitable for him or her , because if you dont undertand your niche you can continue getting losses , do first learn and undertand you style of trading is better suited to you then work on it and start trading ,.,.

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    One of the famous stock trader is made definition about "in" and "out" traders, who like to be in a position like swing traders, and other who prefer to be out of the position like scalp traders. And he advice to realize what we are and to follow that. Also, the best thing to develop our trading result, is to look at our statement and to find where is our weakness and what is our power.

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    Registered user maly's Avatar
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    Quote Originally Posted by star27 View Post
    Yes every trader have to understand which type of trading is suitable for him or her , because if you dont undertand your niche you can continue getting losses , do first learn and undertand you style of trading is better suited to you then work on it and start trading ,.,.
    we have to start from the effort to understand what we do not understand, if we want to do that when we do the things we understand it I think we will be more calm and menimati sedikiti run it all, we must continue to work extra hard and try as much as us to do just that

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