Trading Style: Conservative or Aggressive

Student's QuestionI read all the time about "aggressive" in contrast to "conservative" traders. I simply have no idea what I should be! Could you maybe comment on contrasts between these two "types of traders". How should I behave? What brings more profit or what preconditions or situations should I look at to know if I should act aggressive or conservative?Instructor's ResponseMuch of this will be determined by your own personality and your emotional composition. How do you tend to take life on right now? Outside of trading, are you likely to take the risky path more often or do you go down the conservative path?As you learn more about trading and as you Demo trade you will find yourself gravitating toward a style that suits you. You will find yourself feeling more comfortable, more confident trading one way rather than the other. Also, it is not something that has to be decided at the outset.

Trader’s implementing either style can be profitable. A lot will depend on the individual trader along with market conditions and pairs that they are trading.Take a look at the grid that I have posted below...this is one way of breaking out trading styles.

At the top of the grid you will find the more risky trader while at the bottom you will find the more conservative. Clearly other things have to be considered, but this will give you a start.

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