Page 7 - Trading #101 Course – Part One: Trading Basics
P. 7
TRADING #101 COURSE – PART ONE: TRADING BASICS /2017-10-06
3. Investor
Investors are traders when they attempt to time their long-term investments. They
study fundamentals and combine this with technical analysis. “Investors” are long-term
“trend traders” generally using weekly, monthly, and yearly charts. They can deal with
minor losses but are less comfortable with active trading, where losses can come
quickly and frequently during “draw-down”.
Trading Profiles – How They Work
Your trading profile classifies you so you can quickly identify what experience level,
trading style and trading frequency you fall into. This helps you determine what
technical and fundamental trading signals may be the best for you to use.
• Identify your “experience level” from the list in this chapter (master,
intermediate, or novice)
• Identify your “trading style” from the list in this chapter (trend, scalp, or
countertrend)
• Identify your “trading frequency” from the list in this chapter (day trader,
position trader, or investor)
Visualize Your Trading Profile
Draw a triangle; label it by starting at the top and moving clockwise as:
• Experience Level
• Trading Style
• Trading Frequency
You’re One Step Closer
Now that you’ve locked in your trading profile, you are one step closer to developing a
winning trading system. The following chapters will take you step-by-step through the
basics needed to build your system.
7 | P a g e