Trading Styles

Student's QuestionI read all the time about "aggressive" in contrast to "conservative" traders. I simply have no idea what I should be! Could you maybe comment on contrasts between these two "types of traders". How should I behave? What brings more profit or what preconditions or situations should I look at to know if I should act aggressive or conservative?

Power Course Instructor's ResponseMuch of this will be determined by your own personality and your emotional composition. How do you tend to be right now? Outside of trading, do you tend to take the risky path more often or do you go down the conservative path?As you go through this course and as you Demo trade you will gravitate toward a style that suits you. You will find yourself feeling more comfortable, more confident trading one way rather than the other. Also, it is not something that has to be decided at the outset.Take a look at the grid that I have posted below...this is one way of breaking out trading styles.At the top of the grid you will find the more risky trader while at the bottom you will find the more conservative. Clearly other things have to be considered, but this will give you a start.

Read more: Forex @ DailyFX - Trading Styles http://www.dailyfx.com/forex/education/trading_tips/post_of_the_day/2010/09/02/Trading_Styles.html#ixzz0ydGAKgb6