A trader is always faced with the question of which trading style to pursue. After he has clarified this for himself, it is time to define a strategy. Only then does the definition of the trading rules, ie the definition of the trading system, come.
For example, the trading style can be medium-term swing trading; the strategy is defined via the market technology, while the trading system then includes things like entry set-ups and risk parameters.
Information gathering and analysis
For the trader, however, there is still the further question of Information gathering. Regardless of which trading style you want to pursue: Beginners in particular are often dependent on analyzes from other traders because they are in the learning process.
At this point, the trader must already make a selection, between them interesting and less interesting trading approaches. As a rule, most beginners want to learn day trading. This is because intraday trading is considered very exciting. However, in the course of time the preferences turn, because one is either too time-constrained or does not see himself as a short-term trader.
Nevertheless, it can be useful at first to be interested in day trading because you are on it Learns a lot about market technology. Market technology is a source of information. So if the trader has decided on a trading style - let's say medium-term swing trading - he must also go to the information search in the next step.
Focus on your own preferences
If he mainly wants to trade via market technology, the trader must obtain good price supply and a source for current and timely news flow. News is important in order to be immune from greater risks. In this step, the trader must continue to learn. Which technical set-ups are more reliable than others? When is the right timed entry?
He may also be accessing third-party analyzes, only this time not on an intraday basis, but on a swing trading basis. Our tip in the context of the information selection at this point is:
"When searching for information or analyzes, concentrate on trading approaches that are similar to your style."
At first glance this may seem obvious, but it is not. Imagine trying day trading and realizing that it is less suitable for you personally - for whatever reason.
When looking for suitable analysts you often find it to successful day traders. You catch fire again and fall back into the old pattern just because you have been motivated by others. You will notice that this is not expedient.
In your trading career you will always come across traders who are successful with a trading style with which you personally have not had any success. One should not be confused by this and not lose sight of the individual. This is the only way to achieve an almost passable information selection.
Another reason why you should not lose sight of your own trading style is that reading other analyzes should add value for you. Even if you find traders or analysts who follow the same trading style, it will not be easy for you to draw the right conclusions if the strategy behind it is different than yours.
For example, it can be that both you and the analyst you like to read are swing traders. However, the desired entry set-ups are different. After a while, you will ask yourself where the analyst finds his entry and how he protects himself. Delivering a pure analysis is one thing, but adapting it to the trade is another.
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Conclusion - Always keep an eye on your own trading style
It is clear that as a bloody beginner - and as long as you have not developed your own trading style - you are susceptible to many analyzes. So try to find out which style suits you best as early as possible.
There are people who want to bend and break day traders but don't realize that they don't are the type for it. They therefore lose money continuously because they don't want to learn anything. That shouldn't happen to you. There are several ways to make money in the markets.
Being focused also helps you with information selection and you won't be able to easily catch fire for other styles if you have noticed that your own style It brings you closer to success.
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