Online Trading For Beginners What Type Of Trader Trend Or Contrarian?

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Online Trading For Beginners – What Type Of Trader Trend Or Contrarian?
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Online Trading For Beginners

One of the most important decisions for a trader to make in regards to his trading style is what type of trader is he or she? So, you’ve done all the required steps thus far to begin your day trading career.

You’ve decided on one particular security to trade.

You’ve decided on what broker to use. They’ve given you a demo feed.

You’ve decided on what day trading platform to use. They’ve given you a free demo and you’ve opened a sim account.

So, you’ve taken care of those major things. But there is still work to do. Now that you have all that figured out you now have to not only decide on what indicators to use but also what type of trading style to actually learn.

While it may seem quite simple as really there are only two choices, it can often be difficult to decide. So, hopefully this video helps you make that decision and gives you some advice on what direction to take in regards to adding indicators.

First thing you should know is what each style is.

A trend trader is someone who takes trades only in the direction of the trend. They never enter a trade going against the overall direction of the market. It’s just too risky for them. They want to continue on the current trade and are actually betting on that happening.
A contrarian trader is someone who believes they see a reversal pattern. They are gambling on the trend to end and taking a trade against the current direction of the market. They never trade with the trend and they are always betting against it continuing.

Try and select what works best with your personality. Personally for me it makes me nervous to bet against the trend. And that’s the reason that I prefer to be a trend trader. You might be different though.

The last thing to understand is that taking trades against the trend takes a higher level of skill. You should be very familiar and comfortable reading price and market dynamic before you try and do this. Make sure that you have plenty of practice and a proper stop management and risk reward in place.

Online trading for beginners is a never ending learning process. Remember to always be refining your craft no matter your skill level.