InvestorQ : How does the magic trading formula reflect my trading personality?
Aashna Tripathi made post

How does the magic trading formula reflect my trading personality?

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shivangi Arora answered.
3 years ago
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The truth is that everybody has an investment personality. You may be patient, opportunistic, and mercenary or it can be any other defining characteristic of your personality. First be clear that your magic formula fits into your investment personality. A mercenary trader trying out a Next Big Story formula is a recipe for disaster. You just will not have the personality to make a success of such a long term formula.

Once you are sure it fits your personality, back it with data. Create a hypothetical portfolio and try to run a dummy for a period of 3-4 months. While this may be a short period, it will give you a good idea whether your idea is good only on paper or in practice too. Your personality defines your strategy and your response to external stimuli. Your practical testing gives you a picture of whether your magic formula is workable in practice. Of course, rethinking and reworking will be a continuous process.

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