Traders Coach

Traders Coach – Discover Your Trading Niche

In the previous article titled “Trading Rules” the 5 steps to successful trading were discussed. This article will dive deeper into what it means to complete the first step, which is to create a system that gives you a slight edge in the market. In order to complete this first step, you must find your trading niche. Many new investors find it difficult to find their niche and will often utilize the services of a traders coach. This article will discuss how a personal coach can help you to complete the first of 5 steps to successful trading.

The idea is to find a market and a trading style that suit your personality. The very first thing a traders coach will do is ask you three important questions that will help you to determine this. First you will need to decide if there are any markets that you are passionate about, and if you already succeed in a certain market? You will also need to figure out for yourself which of these markets will make you the most money. A traders coach finds that this part of the process is about discovering what motivates you and what you are passionate about. Passion and motivation are two concepts that work very well together, and if you can combine them both, you are that much closer to making money while trading stocks.

In order to find a market and trading style that is a good fit, a traders coach will ask you four additional questions that will help you to further assimilate this process. The trading coach will ask you first of all, how long have you been trading? If you have been trading for less than one year, most likely you have not yet found your trading niche. You will also need to disclose to your traders coach whether or not you have tried different trading time frames, such as intra-day and/or swing trading.

Additionally you will need to discuss your trading style. Do you typically trade using technical analysis or do you practice fundamental analysis? The last question you will answer is whether or not you have tried different set-ups in your trades? This may seem like a lot of questions, but fortunately there is a way to determine all of the above, without costing you an arm and a leg.

Paper trading is the key! Through paper trading, you are able to practice trading without the risk of losing capital. Since you are not trading with actual money, you are able to focus more on the methods and styles you have chosen, without the trading anxiety felt by most investors. A traders coach will emphasize the importance of flexibility in trying different trading styles so that you can pin-point your niche. Investors will often ask how long do I need to paper trade before I should begin to trade with real money? This is a great question, but unfortunately one that is determined by each individual trader. The rule of thumb is basically to paper trade until you find your trading niche. The more comfortable and disciplined you are when paper trading, the easier it will be to overcome the inevitable trading emotions that come into play once you begin investing money.

Remember that finding your trading niche is the most important step you will take that will ultimately determine your success as a trader. It is true that you will naturally navigate towards markets that suit your personality. Perhaps you are a person who requires stability and security? Maybe you thrive on novelty and stimulation? A traders coach can provide you with the tools and education necessary to help you find your trading niche so that you can master the stock market.