Identify Your Spread Betting Personality With our Unique Guide
LONDON, May 2, 2012 /PRNewswire/ --
As the saying goes, one man's food can be another man's poison, so some traders would give their right arm for a particular trading scenario while others wouldn't want to take up the same opportunity for anything in the world.
No two people will react to a given situation in exactly the same way and can also hold true for those in the field of financial trading and spread betting as well.
What, then, makes traders use drastically different trading strategies to potentially profit from what the same market?
The difference, according to financial spread betting provider Finspreads, lies in different personality types, with traders often preferring to choose a spread betting or financial trading strategy that is closest to their individual personalities.
Here's a guide to the three most common trading personalities into which most spread bettors can be categorised. Read on to find out which one suits you best:
Position Trader (long term targets)
Position traders place spread bets for the long term, often holding the trade open for several weeks or months on end.
This style of spread betting is best suited to traders who prefer to take their time weighing the variables and analysing a situation before placing a trade.
The success to position trading lies in the trader understanding the long-term fundamentals or price trends of a market such as a share or currency - often by using news, economic data or charting to determine the market's eventual direction. The most important aspect of position trading is ignoring short-term fluctuations in prices.
Swing Trader (short term targets)
If position traders are representative of people who wait patiently for stock prices to reach their desired levels over a period of several weeks or months, swing traders are their less patient cousins who prefer to take a position on stocks which have the potential to move significantly in a relatively short space of time - often ranging from a couple of days to a couple of weeks at a time.
Day Trader (very short term targets)
Day Traders, on the other hand, can best be described as people who prefer to make a fast buck or use quick moves to profit from any given situation.
Day traders typically place trades in the morning and prefer to close out their positions at the end of the trading day, without rolling over their position to the next trading day.
Many day traders open and close their trades within the space of a few seconds or minutes, focusing on narrow spreads and markets with plenty of movement.
Financial spread betting provider Finspreads - one of the leading providers of spread betting in the UK - offers prices on a range of markets including stocks, indices, currencies, commodities and more, enabling traders to take a position using a strategy that best suits their trading personality.
As a leveraged product, spread betting comes with high risk; there is the possibility that you could incur losses greater than your initial deposit. Ensure you fully understand the risks before you start trading.
Finspreads is a leading online financial spread betting firm, offering access to thousands of instruments on the world's financial markets.
The company pioneered fully interactive online spread betting in 1999 and continues to invest in technology to ensure that its service remains amongst the market leaders.
SOURCE FinspreadsBack to top