Recently I see an interesting blog post via a tweet, which lead me to creating this post.
Here was the original tweet:
Influence on Your Results?
The original post is certainly definitely worth reading once you’re done here…
On reflection, Mark highlights a key point that many don’t often take into consideration when starting to trade Betfair;
“Society often adopts certain views, that don’t fit with trading”
It’s probably not so well documented on-line, but everyone has a unique set of expectations. Usually plotted against time in the form of hourly and daily rates of pay. Trading it just isn’t always going to be like that.
Looking at Marks results graph (and I hope he doesn’t mind me using him as an example) he seems to have higher peaks and troughs than me.
That may just be due to the nature of the markets he trades, although I am aware of other traders that trade horses pre-race who, have similar big wins/losses. It’s a personal thing.
It’s not necessarily a problem, as the end result may be similar to that of somebody who wins consistently. But how would it make you feel?
Not everyone reacts the same. Personally I hate to take too much risk, those big reds would kill me. The most interesting thing about this though, it how it changes your personality/attitude towards trading.
In My Experience:
During my time trading it’s fair to say my personality/attitude has changed substantially. Many are aware (looking at the various forums) but it gets cast aside rather quick, maybe it shouldn’t?
I don’t think either approach is wrong, everyone copes with things differently.
For me though I just couldn’t go day-in-day out with the big highs and lows. Even if I knew I’d be a net winner over the longer-term, it’s just not me.
I think what I’m struggling to say here is not only is it about understanding the markets, and what’s going on with the various information on offer. But it’s also important to understand yourself and how you fit into it all.
Knowing what works best for you and what you really suck at is bound to help! Similarly, what you can cope with and what you can’t!
Knowing your strengths and weaknesses, allows you to channel your efforts more productively.
If you are good at swing trading and poor at scalping you can up your stakes for swing trading to make more money. Reducing them when scalping to avoid losing would be a good idea too. The whole time you still get the benefit and opportunity to learn and improve.
I don’t think it’s a case of one type of person can succeed and another can’t either, but more a case of where one can excel comfortably.
Now, that is going to be a lot easier said than done, its one thing I can guarantee you!
Take some time to learn a little about yourself. I really wouldn’t be surprised if it pays you back for your time, and some…
Here is a simple personality test I took some time ago. It would be interesting to hear readers results too!
I wouldn’t be too surprised if there was a trend in the results between those that are already successful.
My result was INTJ, let us know your result in the comments!
P.S. I’m off to Magaluf tonight, due back Thursday in-case you’ve emailed me and I haven’t responded as quick as I would usually!!
Related Post: Overcoming Your Trading Fears