About a week or so ago, I was asked to review the performance results of a new client’s trading portfolio for the Year 2006. After a quick scan of what I saw it was obvious to me that this trader tried to trade everything, and in every different time frame, more often than not to the devastation of his trading account balance.

He had made multiple day trades (a style of trading where all positions are open and closed before the end of the trading day), a number of swing trades (a method of trading where one takes a position for several days to several weeks), and many others that fit into the category of actual long-term investments rather than actual trades, and others still that were held for shorter periods of time.

The first question I asked of him after viewing his results was “What type of trading is your main focus?” He looked at me and replied, “Well, position trading, of course! I find trades to take and open positions in them until I sell them.” The funniest thing about his comment was that he was dead serious; he truly thought he was a position trader.

Needless to say, but to most experienced traders, and even a large portion of beginners, it is obvious that this trader needed some serious help with his trading. Luckily, after some deep discussion I helped him discover that he really needed to find a specific trading style that fit his personality and to stick with only that style and time frame until his trading results improved.

Article Source: http://EzineArticles.com/412126