Thought of the week : What kind of Trader are you ??? (Part 2)

Next type of trader is Big Wave Trade. They're contrarian with the Daily Wage Trader. Their stlye is letting profit run. Losses is not an issue. It's part of the game. Here's the characteristic:
a. Let the profit run. Their Confidence level is very high. They won't taking profit if the target didn't reach, unless Black Swan occured.
b. Stop Loss is not an issue. Usually the Capital is big so multiple loss won't harm them. The Confidence Level also an important part of their trading. They rather take loss than losing opportunity.
c. Never had enough. They're looking big chunk of gold for their profit. While in process, they don't mind risking fraction of their capital.
d. Low Winning Ratio, this is logic. Letting profit run may find more failure than take profit partially.
e. Very High Risk-Reward Ratio. They don't care how much money they had. They only care how much money they make from the opportunity.
f. This kind of trader is in my opinion an evolution from people who are a big gunner wanting get rich quick become a more patience and better money management.
g. Patience is gold. They dare not to taking profit in even months just to get all of the profit in just 1 day.

What to be concerned:
These kind of traders in my opinion will be the one who get rich from the market, or go broke fast..
The Big problem is the Confidence Level and Bias. They're a little difficult to change their bias in the long run and when market change, they will fighting the market more often.
At the early career, they also had problem from taking losses. So these kind of trader if survive means they already embrace the stop loss thing. And that made them a very great trader.
So the first things to do for this type of trader:
1. Adequate Capital (risk less than 1% per trade)
2. Confidence with solid early signal. Before making a bias, make a parameter of trend failure and do it with discipline. This parameter like trendline break, S/R break, Maximum drawdown,etc.
3. Trail Stop, lessen more losses. You can enter again if you got washed out without significant loss.

Big Wave Trader IMO is more superior than Daily Wage Trader in the long run. It's like employee vs businessman. For starter employee usually make more money but in the long run businessman is who stand above them.

The Sucessful Daily Wage Trader may evolve to Big Wave Trader if they are willing to have more success. It's all about getting out from the Comfort Zone.