How You Can Make Yourself a Better Trader (or investor...)

Finding out how you can make yourself a better trader early on in your trading journey generally will reap big rewards.

As you'll read in the article below, figuring out "what kind" of trader you are in regards to things such as timeframes available to trade, what type of technical or fundamental analysis you like to use, trading trends or breakouts and others that "define" you and your strategy are crucial for long-term, consistent results.

I can personally attest to the statement in the article that "Trying a variety of analytical techniques rather than consistently following one is a problem for traders, and it's also a great way to lose your trading account." is highly accurate.

Someone who stops and "defines themself and their trading strategy" and then asserts the discipline necessary to follow who they are with their strategy, will have a much better chance of avoiding spending years of time and money testing different strategies and variables.

If you determine that trading reversals during the first hour of the day suits you well and is profitable, don't spend time trying to trade multi-day breakouts if you've already determined that method to be un-profitable for you. If you do, you may wind up erasing any profits made from one strategy and losing them in the other.

The article and links below to the "limited time offer" trading ebook provide more details and ideas to help you make yourself a better trader or investor.

How You Can Make Yourself a Better Trader
Define Yourself: What Kind of Trader Are You?
Originally published October 27, 2011

By Elliott Wave International

The idea of being a successful trader is exciting. The reality of becoming one is another thing. You need to understand more than the markets -- you need to understand yourself.

EWI's Senior Analyst Jeffrey Kennedy knows what it takes. He has analyzed and traded the markets for over 15 years. Jeffrey has learned what it takes to be successful, and he has the discipline to apply that knowledge. Enjoy this excerpt from his free Club EWI eBook Best of Traders Classroom, in which he answers: What kind of trader am I?

As a trader, it is imperative that you define your approach to the markets. For instance, do you follow the trend or do you like to play breakouts? Are you a commodity trader or an index trader at heart? What's your trading time frame, five minutes or five weeks? Moreover, how do you analyze markets, fundamentally or technically? Do you prefer using a black box type trading system or making your own calls?

My trading style is to trade with the trend. Specifically, I like to buy pullbacks in uptrends and sell bounces in downtrends. My markets are commodities, and my time frame is three to five days. If I catch a trade that has some legs to it, and it lasts a little longer, that's fine with me. Bottom line, though, I'm a take-the-money-and-run kind of guy. This is who I am as a trader.

In addition to the Wave Principle, I include basic chart reading and bar patterns in my analysis. While I do use a few select technical studies in arriving at my decisions, I have always believed that "price" is the ultimate indicator and that everything else is secondary.

Remember, success in trading comes from the consistent application of a proven methodology. If you don't define your methodology, then your trading style could change with each new issue of Stocks and Commodities magazine. Trying a variety of analytical techniques rather than consistently following one is a problem for traders, and it's also a great way to lose your trading account.

Read more of Jeffrey's lessons in his free 45-page eBook: The Best of Trader's Classroom. This valuable eBook, adapted from the $189 set of the same name, offers the 14 most actionable lessons every trader should know.

Download your free eBook now.

This article was syndicated by Elliott Wave International and was originally published under the headline How You Can Make Yourself a Better Trader. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

Return From "How You Can Make Yourself a Better Trader" To "Stock Market Basics"

Elliott Wave Videos

Learn to trade in the direction of the forecasted trend with this free video course. Click here to start watching: Free Elliott Wave Video Lessons

Free Newsletter Updates

Trading Resources

Stock Trading Software
Stock Trading Software
Stock Trend AnalysisStock Trend Analysis