WHAT KIND OF TRADER ARE YOU? “GREEDY GERDIE”
August 15th, 2008 | 
Author: Well we’re wrapping up our series on “What Kind of Trader Are You”. The last trading personality on the hit parade is “Greedy Gerdie”. You may recall, Gerdie has a tendency to stay way too long at the party and more often than not, she ends up with a hangover. She wants it all, usually in one trade and the result is almost always negative.
Why does she do what she does?! Traders like Gerdie don’t have the confidence that they can consistently win in the market. When these types of traders find themselves on the right side of the market, they stay too long trying to squeeze every last penny out of the position. The “Greedy Gerdies “of the trading world also have a tendency to not trade a diversified portfolio. They put all of their eggs into one basket and watch that basket very closely. However, to Gerdie’s credit, she has a trading plan. Having a plan sets her apart from a majority of traders. The problem is that the plan is not well thought out.
Gerdie’s five step trading plan:
1) Turn on the computer
2) Find a stock that has a catchy ticker symbol
3) Hit the buy button
4) Hope and pray
5) When the trade is working, make as much as possible
Gerdie is currently ruled by her emotions. She is undisciplined and has no plan for success in the stock market. She is random in her approach. So, how can we possible help this lost soul?? Here is Robin’s elixir for Gerdie:
1) She must have a TRADING SYSTEM
2) Gerdie must not deviate from the RULES OF THAT SYSTEM
3) It is imperative that Gerdie have PREDEFINED ENTRY AND EXITS in order to eliminate fear and greed
4) Gerdie must DIVERSIFY her portfolio and pay special attention to POSITION SIZING
5) Gerdie must resist playing the HOLY GRAIL GAME. No system is perfect. Find a system that works for you and stick with it.
Well another hard day working for the rights of the common man This Robin hood gig is not all that it’s cracked up to be. I have to try and keep “Little John” under control and sometimes he can be a real pain in the Tunic. By the way, stop by and visit the “Merry Band of Traders” at www.MarketTamer.com. They have a plan for your stock market success. See you next week. Robin
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