I like reading through comments on trading blogs. However, one type of comment always puzzles me. It’s a type of statement like: “I’m a swing trader” or “I only trade specific stocks”. Far be it from me to scrutinize what market you trade and what timeframe you use, but I was hoping someone would enlighten me.
As a trader and a technician, I find statements like, “I only trade NASDAQ 100 stocks.” to be self-limiting perceptions. I am a trader. Not a day, swing, or position trader. In fact, I regularly employ them all. I do use specific time frames, but my timeframe is fluid wherever I find an edge. I have been more profitable as I have stepped away from day trading every day and instead use my day trade setups to enter and exit swing trades. This merger of trading styles is where I have found an edge.
I trade everything. I began trading stocks and, most recently, have been trading stocks exclusively. There was a time when I traded the emini S&P intraday, but my edge in eminis has since become less profitable than the one I have now. I have also traded forex, but don’t every day because my edge doesn’t always exist. However, when my edge existed in the EUR/USD, I took the trade because it was there. If I had been a day trader of INTC and MSFT only, I would have missed a great trade. I’m now researching option plays and I still trade futures. The point is I don’t limit myself to one market. I’ll trade anything if an edge exists.
Traders get caught up in the perception that they need to specialize. But what does that mean? It may sound cool to say you are a pork bellies swing trader, but do you know why? Do you have an edge in that particular market and timeframe? Or do you have an unnerving affinity for pork bellies? It is better to find your edge and apply it in whatever market and on whatever time frame it exists.
One word about market direction, I wanted to add market direction to this list, but direction is more a function of edge. Some of my setups just work better on the long side than the short side. Is there such a pattern as an inverted cup and handle? Personally, I love to short as much as I enjoy going long. It makes no difference.
What type of trader are you? Let me know and why.
