Hope you all would agree that trading in all the formats ("Intra-day", "Swing", "Positional", "Long Term") may not be possible for us as an individual.
As a trader, I tried all the formats but could never settle in intra-day. I found my forte in intraday and swing trading. I could conclude that one needs a different set of skill and traits in different formats of the game.
This can be very similar to the famous game of Cricket.
We can see this as in 3 different styles-
Intra-day = T20
Swing = One Day
Positional = Test
Every format of cricket requires one to have different skills set.
T20 cricket requires players to be - quick decision makers, fast and furious, quick on the field, etc.
As a trader, I tried all the formats but could never settle in intra-day. I found my forte in intraday and swing trading. I could conclude that one needs a different set of skill and traits in different formats of the game.
This can be very similar to the famous game of Cricket.
We can see this as in 3 different styles-
Intra-day = T20
Swing = One Day
Positional = Test
Every format of cricket requires one to have different skills set.
T20 cricket requires players to be - quick decision makers, fast and furious, quick on the field, etc.
One Day cricket requires the player to be - strategic, to have good stamina, very disciplined.
Test cricket requires the player to have - a lot of patience, be strategic and have high stamina.If we go by this analogy, then -
Intra-day traders need to be - quick decision maker, fast, strong on psychological factors.
Swing traders need to be - high on discipline, good analyst, have some patience, need to be acquainted with global scenario, etc.
Positional traders need to have - a lot of patience, high on vitamin-M, strategic and need to have good knowledge of the stock.
Every player does not play in each format with similar efficiency. Rahul Dravid is a better player of Test cricket but may not be as good in T20. A pinch fast runner and good fielder like Virender Sehwag is good at T20, but may not be fit for Test Cricket.
Of course, there are some all-rounders (in the terms of playing in all the formats) like Virat Kohli. But frankly, how many of them are like that. We know everyone cannot be Virat Kohli.
Better is to get yourself perfect in one format of the game first, then try others.
For this, you need to analyze, your skills and personality type. So start working on what you are fit for and then decide which format to trade.
To make it too simpler - compare your personality with good Test players and if you find a similarity with some good test players, you can consider yourself to be fit for positional and long term. (This is the very raw and simplest way of understanding your trading personality. And of-course this is my way of deciding it - I may be wrong or there can be more angles to it.)
The similar analogy goes true with all other forms of trading and cricket.
Happy Trading and Cricket World Cup 2019.
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Disclaimer: The contents produced here are
purely for educational purpose. They should not be construed as buy/sell
recommendations. I am not a SEBI registered Analyst or Investment Advisor.
Readers are advised to consult their Investment advisor before taking any
decisions based on the above write-up.
