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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: TFF who wrote (2628)	8/10/1999 9:45:00 PM
From: Eric P	Respond to of 18137

Taf: Excellent link. They referenced three classifications of traders. I am definitely of the 'mathematical' flavor, while Alan is certainly a trader of the 'intuitive' variety. Either style can be equally successful. It's the 'gambler' style that is inherently dangerous. Thanks again for the link. The following are some pertinent excerps from the link. The Mathematical Trader This personality type totally believes in the rule of mathematics and will view money as numerical figures, without attaching any emotion or judgement to it. For the true mathematician trader, money has no value except for the ultimate outcome in a probability equation tested over a period. These traders know that they will make money just following the signals. This type of personality disconnects from the excitement of the game of trading and from the emotion of the rewards. Because he is mainly interested in the win of the numbers, he can trade a trend following or oscillator type of system. The Intuitive Trader This personality type is the opposite of the mathematician trader, although these two personalities can be equally intelligent and interested in the mechanical / research aspect of trading. However, the mathematician personality is predominately directed from the left brain, which promotes precise, unemotional, linear thought. The intuitive trader is predominately directed from the right brain, which promotes illogical leaps of understanding, intuitive knowledge and emotional / sensory awareness. These traders learn to use their intuitive signals to make money and are able to harness their emotional power to trade more effectively. These traders can and often do use a mechanical system but add to it an intuitive indicator. The Gambler Trader This personality type, which needs to feel an instantaneous gratification of adrenaline and excitement, suffers from a confusion of signals from either the right or left brain. He is too excitable to maintain an emotional distance from trading, on the one hand, and too excitable to detect the subtle intuitive signals, on the other hand. This type of trader is able to tolerate systems that are loaded with high risk, high volatility, brief time frames, and high drawdowns. Although the gambler trader is capable of extraordinary moments of trading brilliance, this personality type is usually unsuited to the profession of trading because of his lack of inner discipline and his need to create enormous wins rather than a steady stream of moderate gains. All traders can fit into this category for short periods of their trading life. Very often this leads to their demise as traders. No system is the right one for this trader because he is undisciplined.