Tipos de Traders – ¿Cuál eres tú?


Financial Education And finally we are here with one of the videos
that have received the most votes since I am doing
these surveys, with 41% of the audience
in favor and 49 votes in total… “The types of traders
will be our topic today”. Once again my total gratitude
for participating and again have the opportunity to decide
what we will discuss in the next installment. And remember that if the subject of
your interest is not among the options, you can always leave
your suggestion in the comments or review the proposals of others
to give them your support. Then, without further ado,
we go to what we came in. Being trading an individual activity that
can be done from a technical approach and also from
a fundamental approach, it can even be done from
a mixed approach where take
into account both… And this of course considering only
the professional side of the issue because there is an empirical side
that does not even deserve to be mentioned. Being such a versatile activity in that
sense means that each trader develops and adapts
his own strategy, and there are almost as many strategies
and approaches as traders. Therefore, classifying the types of
traders can represent a fairly long list. But in general terms, today, we are going
to separate those three great groups: The Fundamentals, the Technicians
and the Mixed. And we are going to group them
based on their methodology. But let’s understand a little more
in depth the three big groups. Let’s start with
the technical trader. The technical trader uses
the past action of the price, the history of the movements of
a financial instrument to perform his analysis and make his
decisions. This approach is based on the principle that
history is cyclical and tends to repeat itself. The purely technical trader
ignores the news, they simply do not care,
they are irrelevant to him, they give him the same economic reports,
the instability of the country, and so on. Its approach is highly mechanical
and methodical, and usually makes use of indicators
such as moving averages or oscillators to identify the trend of the asset
and trade it accordingly, taking advantage of opportunities or
signals of inputs and outputs. Then we have
the fundamental trader. This character tries to analyze
the real value of an asset, be it an stock, a commodity,
or a currency, highlighting potential trade
opportunities when the underlying price
of that asset in the market indicates that it is overvalued
or undervalued. The fundamental trader
is typically very methodical and has a high knowledge of
a particular asset, and the most common factors that affect
the value of that asset. For example,
if we talk about a company the fundamental analyst will review
the earnings reports, the commercial updates, and also take
into consideration general aspects that may have an impact on the performance
of the company in the future, such as interest rates
or retail sales. Finally there is the mixed trader that takes into
account the technical aspect and also the fundamental, and this last group is subdivided
into three smaller groups, which are the trader that has more
inclination towards the technical aspect and trades according to indicators,
but is careful with important announcements. in the news to avoid possible
movements against. There is also the trader who feels most
inclined towards the fundamental approach and trade based mainly on news
but observes the graph to be aware of possible strong points
of support and resistance, or pivot points. And finally, the trader who has no particular
inclination towards either approach simply takes advantage of technical
opportunities when presented without paying attention
to the news, and also takes advantage of
fundamental opportunities when presented without paying attention
to the price history. That is, when he disguises himself as
a technician, he forgets what is fundamental. And when it disguises itself as fundamental,
it forgets the technical. Now we can divide these groups
of traders based not on the approach to
making decisions but based on the time
they spend within each trade. First of all we have
the Day Trader. This is a very short term trader
that is also called Scalper. And this trader executes multiple trades
during the course of the day looking for profit from
small movements in the market. Typically, it does not assume risk
from one day to the next, that is, it does not leave open trades
during the night, it can manage between 10 and 20 trades
within a single session. Day Trader is extremely
opportunistic, seeking to take full advantage
of market movements, especially when there is
greater volatility. However, due to the high
frequency of trading, he must have a solid sense
of market understanding, and be extremely methodical
in his trades. Know how to accept
and manage losses, preventing emotions from
influencing their performance. Then we have the
Swing Trader Who wants to get the maximum benefit from
the price swings in the markets when the asset is in a clear trend and
also seeks to identify points of reversal or changes in
trend. Swing Traders typically trade
slower time graphs, from one hour to
the daily chart typically. Being able to stay within a trade
from several days to several weeks. Like all good traders, emotions must be
prevented from influencing their behavior and they pay careful attention to the price action
to determine their next execution. Finally there is the
Long Term Trader. It usually adopts a
buy-and-hold strategy, which essentially means buying
an asset as an stock and keeping that instrument for several
years until it increases in value. For example,
with the Dow Jones tend to see a return of
between 5% and 10% per year, which seems to make sense as a long-term
strategy for some investors who prefer to put their
capital in the market instead of leaving it in the bank,
earning marginal interests. Obviously this strategy involves some risk,
particularly in bear markets where the indexes can suffer corrections
of up to 20% in small periods of time. In which case, it is possible to rely on
put options or short sales to obtain gains during
downward movements. Knowing these characters
we can now sub-classify them according to the level of success they have and
their personality at the time of trading. Let’s start
with the most successful. There are 2, the strategic trader
and the planner trader. The strategic trader is realistic, it is not difficult
to make decisions, it is practical and organized. He is able to see the whole picture, and is very
good at identifying trading opportunities although he sometimes sins
as a perfectionist. He concentrates on
information, making intelligent decisions,
which makes him a competent trader. Then there is the planner trader
who has the ability to adapt easily to new market conditions, concentrates
on education, leadership and communication, although he sometimes
analyzes too much. Moderately successful traders
are on the second step. Here we see 10 types of traders,
and they are the following: The retailer, who is a meticulous
market analyst, is careful, serious and logical. He is able to follow
the trading plan although it is not always very good
to visualize the whole picture. And the excess of analysis can sometimes
cause that it does not end up being decided. The facilitator focuses on helping
his trading partners, is decisive, social, is a good member of teams, organized, and serious,
and can see the whole picture, can make conceptual
connections, but is not very good
at fulfilling a trading plan, and he usually lacks a bit of self
confidence to put his own ideas into practice. The innovator, is concerned about
understanding the market to develop new solutions, is creative, intuitive
and has good reflexes He is good for processing
large amounts of market data and designing creative
responses. He is able to see
the whole picture, think independently and respond
quickly to market changes. But he can end up feeling bored with
routine trading activities. The spontaneous one executes its trades
quickly and carefully, it is impulsive and decisive. He can see the whole picture,
and press the trigger quickly to take advantage of
an opportunity. But its trading lacks
careful analysis and proper management. The independent one, worries to separate
of the herd in the markets thinking different
from the others. They are people with
logical ideas who work with abstract concepts developing
new investment strategies. They are open to unconventional ideas
and like to see the logic behind a trade. They are not very good at working as a team,
and they can get so involved in their work that they tend to see
their social life affected. The administrative, focuses on managing
his activity efficiently, he can commit to his trading plan and keep very
good records, or trading journal. It is realistic, practical
and decisive. The socially responsible, focuses on
their loyalty to social values and people
are important to him. He is social and
conscientious. He likes to trade from
his instincts, especially when a trade
is in line with his assessment system
and his conscience. However, it is hard for him
to accept the losses, but he can take advantage of
an objective investment system. The value-driven trader focuses on
the principles and material rewards that can be achieved
with trading. He can see the whole picture and
understand how the market works. It is materialistic, motivated
and determined. But it tends to get stuck in his value
system and he may feel very disappointed if the gains are lower
than his expectations. The precise, is detailed
and analytical. Keeps a very detailed record of
his trades and analysis. His custom to keep track of everything
provides a healthy and useful feedback on
his trading. He can carry a target trading plan very well,
but he can get distracted by the details. Which could cause him to lose
or miss good opportunities. The adventurer, is flexible, open-minded
and likes to take risks. Focuses on the facts when
making investment decisions. It can assimilate, prioritize and respond
to large amounts of market information when investing. But sometimes he can take
excessive risks and find it difficult
to follow a trading plan. Finally we have the three least
successful groups in the industry. We have the artist, he is an intuitive,
open-minded, flexible and emotional trader. He worries about having
creative ideas and emotional responses
when he trades. It is good to develop creative solutions
in market situations thinking unconventionally,
and adjusting their occurrences to the market. The problem is that he tends to be too
emotional and gets bored with routine. The fun, is impulsive, sensitive and logical,
social, extroverted, emotional and very optimistic. It is good to interact socially
with other traders but tends to feel bored with the processes
of analysis and routines, which leads to trading
in a very impulsive. It concentrates on having fun
and enjoying life, especially in
the social aspects. Finally, we have the trader
who supports his colleagues, is a dependent, insightful,
creative and serious person. He cares about helping others consistently
with his value system. They are good at supporting other members
of the trading team or as a risk manager, but tend to shy away
from risk, which prevents them from taking advantage
of most trading opportunities. With which of these personalities
do you identify yourself? Which one do you
want to be? Have you been able to identify your
failures and your strengths? Let me know in
the comments. If you liked this video
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