While volatile markets provide plenty of short term and swing trading opportunities, time and time again we continue to hear quite a number of good reasons why traders fail to capitalize, not to mention losing money. Successful traders tend to consistently interpret market direction correctly and possess the courage to act swiftly at arising opportunities. This is only possible when the trader has successfully matched his personal risk profile to the type of trader he is, be it a day trader who focuses on 5 or 30 minutes time frame, a swing trader who would hold the position for a few days monitoring the trend based on past several days or even a long term position trader who may want to view the trend for several weeks or months. Once this has been achieved, the trader will develop the skill to know when to and not to buy or sell price highs or lows respectively, which will be reflected in their trading plan that goes with the market flow.
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