Are you a setup trader or adaptive type of trader?

The best thing you can do when you are a trader is to know yourself. There is a lot of type of traders in the markets, and most of them do not even realize what type of traders they are because of not spending more time analysing themselves. We know a lot about scalpers who takes a lot of trades in a day but aiming very low amount of pips. There is also Intra-day traders who usually takes trades that do not last more than a day or 80% of the time. Swing traders take more of long term trades those they can last for weeks or months. Those are the one of the classic type of traders we have, but today I would like to talk about setup traders and traders who can adapt. Some may have a knowledge or have been taught by someone who adapts with the flow of the market but when they try to do it on their own they do not succeed as much, why is that？

What is a setup trader？

A setup type of trader could be someone who is a visionary, they visualize something before it happens. They know what kind of setup they want to see and enter only when that certain setup plays out. They may have a lot of knowledge but they stick to the same set of rules they may have on their trading plan. Discipline and patience are the key traits that this type of trader has to seriously develop. If your mind only visualize certain types of setups or patterns that is when you may have better opportunities because once everything makes total sense to you, you will have more confidence and a less room for mistakes especially if you know what you doing.

What is an adaptive trader？

Most of the things that we do inside the market are of our natural traits, but sometimes we may overlook the little things because we focus too much on the bigger picture. If you are more of an over thinker you may not be able to be consistent with this type of trading, because the market would tell you what to do and you might over think it. This is type of traders who change their minds fast and adapt with the market at the moment, without them wanting the price to do what they expected. With this type of trading you may trade a lot of different trading conditions with totally different setup, but you need a really good foundation to even reach that level of expertise. You can also easily find more continuation trend trades and also reversal trades regardless of the timeframe but dealing with the timeframe that makes sense at that moment.

Finding consistency

If you have a winning strategy but it is not of your character you may not be consistent because your traits may contradict with what is on your mind at that moment you are in front of your charts. There is a lot of knowledge that most traders know but they just do not know themselves enough to even develop a concrete trading style for themselves not to follow someones style. You may look between the two styles and then you may develop your style with and understanding.