What Markets Are Suited For a Particular Temperament

To a large extent, it is worth mentioning that the markets basically plays lip service to no one no matter ones status, temperament blend etc. So we may now ask, how does my temperament affect the way I trade?

The sanguaine is likely to be an unserious person and this hampers his/her trading deccisions.
The choleric is likely to be one who thinks price should just go where it is going and the constant fluctuations of price may tend to rile his anger and ensure unsteady indecisions, hence losses.
The melancholy on his own becomes too analytical for the market that before he comes to a point of decision taking, the market has already played itself out.
The phlegmatic becomes so unperturbed in his trading that he allows his losses to run the mile race.

So how should these blend with their trades?
The base word in trading is discipline to follow. It may be a system, a plan or a pattern but one requires the discipline to follow through.

The equity market is filled with pattern of trades that does not require analysis at all or all that. It just requires you acting like a robot. The best part of it is being able to minimize risk and then looking for profits.

Basically, there are no markets suited for a particular temperament,, be it the stocks, options, futures, forex, oil and so on. All these market have their own proportionate amount of risk and these risks come without warning so you definitely have to be prepared for it.

A word of caution though, Learn the trade, then trade the risk otherwise the trade learns you and you definitely become the risk.

It does not take a genius to trade these markets successfully but it does take a little discipline to follow patterns guided by your strict money management technique that will overtime make you confident in whatever trade you place and in whatever markets you finally decide to join.

For a more complementary analysis on trades suited for your temperament, you can see http://forexpavillion.googlepages.com.

I’m just a start up guy with loads of experience and still counting. Forex trading just got better. Learn the trade, keep the pips.

http://forexpavillion.googlepages.com