You like to go all in. You don’t take rejection personally. You understand that many, quick rejections are just a way of uncovering those big opportunities that are so exciting. You’re used to operating under the philosophy that you “eat what you kill.” You’re okay with the market tradeoff of having many losses (which you cut short) so you can have the really big winners. Most people aren’t emotionally equipped to handle so many losses…but you are.
What follows is a more detailed analysis of how you can best make the markets work for you:
Take many small, well-defined risks to achieve a few larger profits.
Two to four times larger (or more) than the risks taken
35% to 45%
Typical preferred trading time frame:
Shorter to intermediate term depending on the equity type traded. From a few minutes to a few days for futures, forex or shorter term options to several weeks or even a few months with stocks or longer term equities.
Probability of success:
High, assuming you can remain unemotional as you endure a high percentage of losing trades, maintain this system for at least one year, and the market retains its normal (or increasing) volatility. This trading style needs movement in the markets for success.
Unemotional, decisive, disciplined, focused on the long-view, thoughtful, good with numbers.
Likes competing against others. Enjoys the challenge of measuring their accomplishments against others. Enjoys nature, but will also be highly fascinated when observing the peculiar and specific behavior of a variety of plants or species of animal. Enjoys relationships with others and can be highly tolerant of close friends or loved ones. May be willing to try new food if it has a chance of producing an unusually high-quality experience, but otherwise prefers certain foods known to have satisfied in the past. Careful not to overpay for things. Can be generous with others once they have their own needs met.
Best Bullish Strategies in a normal or rising volatility market:
Bull Call Verticals
NOTE: It’s possible to use the same strategy across all three Natural Trading Styles, though each strategy would be implemented in unique ways which are more congruent to the natural trading style.
- Natural Trading Styles: Comprehensive explanation
- Finding Your Edge: Simple tactics to improve your base winning percentage
- Opportunities with Options: Using options to make money in all market conditions
- Creating Your Trade Plan: Tracking results to improve profits
- Trading Real Money Part 1: Making the transition from paper trading to real money trading
- Trading Real Money Part 2: Following your plan as a routine process to improve consistency of profits