Isn't it funny how you see people with dogs that resemble them? Same looks. Same personality. Stock market Gurus are like dogs. Dogs that live to trade. Let me explain...
Real dogs love to hunt, play and chase bones all day. So do Gurus. They are on the hunt for companies to trade in. Their playground is the market (shares, futures and derivatives) that they choose to trade. Instead of doggie bones, they are rewarded with the profits that they dig up out of nowhere.
Every dog is different, and so is every Guru. Each dog has its own unique temperament. Some dogs are active and hard working. Some are sleepy and thoughtful house pets. The dogs' temperament determines the type of pet they will make. Like dogs, Gurus' also have unique temperaments. This affects how they trade their chosen market. Some Gurus need the excitement of day trading. Others prefer to invest and watch their profits grow.
When you choose your Guru it's like choosing a pet. It's seriously an adoption process! And without a doubt, you'll stick with the Guru that is like you. The breed that appeals most will have the same temperament and tendencies. You will drift towards the same trading style and share similar beliefs when it comes to trading. Your pet Guru will also become a huge part of your life.
I have chosen 3 very different dog breeds to define your pet Guru. The name of each breed really says a lot about your Gurus' trading style and ultimately yours. The trading breeds are as follows:
The Chihuahua
The German Shepherd
The Saint Bernard
THE CHIHUAHUA
Chihuahua's are the breed that need action....and loads of caffeine! This breed represents the "day traders" that seek instant gratification from the market. They "scalp" the market and trade just about anything that moves. To them it doesn't matter why the stock is moving. Their trading time frame is usually measured in hours, minutes or sometimes seconds! They are happy to ride small movements in price and collect their profits. Are you a high energy type? If so, you will probably want to adopt a Guru that has Chihuahua tendencies.
THE GERMAN SHEPHERD
German Shepherd Gurus are not as highly strung as their Chihuahua counterparts. For the most part, German Shepherds are calm and content dogs. But behind this calm is a highly trained guard dog. A German Shepherd will only strike if the situation calls for it. When they bite they bite real hard!
If the Chihuahua scalps for small profits, the German Shepherd prefers to take bigger "chunks" from the market. Just compare their jaw size. When trading goes well, profits can be quite substantial for the German Shepherd. German Shepherds might only need to do 10-20 trades a year to make a decent return.
Gurus of this breed are sometimes known as "position traders". They might give a position a bit more time to show them the money. German Shepherds usually have a number of different trading strategies in their doggie bowl. They will use the trading strategy that fits in with the current market.
In a trending market, they might trade trending stocks. In a flat market, they might range trade between support and resistance levels. In an uncertain or flat market, they might trade chart patterns like triangles and flags.
Their trading time frame is often measured in weeks and days. Not in hours or minutes like the Chihuahua. If you would prefer to trade at a nice steady pace you may want to adopt a German Shepherd.
THE SAINT BERNARD
Saint Bernard's are massive dogs that are loyal and friendly. They'll slobber all over you and are famous for their loud snoring. Gurus of this breed have similar qualities when they trade. In trading terms, we call this particular breed the "investor". Investors like to "buy and hold".
They spend hours upon hours researching the fundamentals of companies before investing in them. They buy fundamentally strong companies that are either underpriced or undervalued. Saint Bernard's are loyal servants to their masters. They often hold companies for years and sometimes decades! When they get it right the returns can be astronomically large! For these dogs loyalty can pay off. Some Saint Bernard traders might also look to buy companies that deliver great dividends. For them, the dividends are like doggie biscuits handed out for being so loyal.
A FINAL BARK
By categorising Gurus into dog breeds we can determine their strengths, weaknesses and natural tendencies when it comes to trading. To become a better trader you need to adopt the breed of Guru that matches your natural temperament.
What dog best describes you? Which Guru will you follow?
Trade the sharemaket like a Guru!
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Article Source: http://EzineArticles.com/?expert=Frankie_G
