How Your Trading Personality Determines Your Profit Potential

|May 13, 2025
Red trading stock exchange trading market graph with business man stress or tension in office with burnout syndrome at desk work related Stress and Burnout

A Note From Amanda: Throughout 2024 – one of the best years for stocks in recent memory – a new trading strategy could’ve returned 274% according to a recent backtest… beating the S&P 500 by 9X! But during the massive market downturn from November 2021 to June 2022, it could have generated an even bigger total return of 301%!

At an online “Special Situation Event” on Wednesday, May 14, Marc Lichtenfeld – our good friend and the Chief Income Strategist at The Oxford Club – will explain this strategy… and how you could start using it every single week as soon as this Friday.

It’s totally free to attend – just click here to lock in your spot.

And in today’s essay below, Marc shares lessons from his early trading desk days and reveals how understanding your natural trading temperament could be the missing piece to consistent profits.

Keep reading to discover which trading style matches your personality…


In my 20s, I started out on a trading desk where traders rarely held any positions overnight. They were day traders who got in and out of their trades in a matter of hours – and sometimes minutes.

As my career evolved and long-term investing became my focus, I shifted my goal to owning “Perpetual Dividend Raisers” for multiple years.

Now I find stocks that my readers should be able to hold indefinitely as the companies raise their payouts every year.

But that’s investing. On the trading side, it’s appealing to be in and out quickly.

With some stocks, you have to wait a few weeks for a catalyst or technical pattern to play out. And that’s fine.

There’s nothing wrong with earning double- or triple-digit returns in a few weeks or even months. Most investors would be thrilled with that kind of performance.

However, some traders enjoy the action and don’t want to wait weeks for the payoff. They prefer to be in and out in a matter of days – sometimes within the same day.

While trading is more speculative, there are some risks with long-term investing that don’t exist with trading. For example, you don’t have to worry about getting overly attached to a stock because you’ve held it for a long time or because you believe in the news story surrounding it.

Intermediate-term traders typically own stocks for a few weeks or longer. They’re waiting for a story to play out, such as an earnings report, a drug approval, or a completed chart pattern.

They’ll usually set stops that give the position some room to move. That way, they won’t get shaken out by market noise, but they also won’t suffer too large of a loss if the trade goes against them.

Shorter-term traders will hold a stock for a few days or less. They’re usually exploiting strong moves in the market or in the stock itself.

They’ll typically take smaller (but perhaps more frequent) losses in exchange for more frequent trading opportunities and wins.

When deciding what type of trading style is best for you, ask yourself the following questions…

How much time do I want to commit?

Shorter-term trading – and particularly day trading, when you’re in and out of your positions within the same day – usually requires you to stay in front of your computer (or at least on your phone) during the trading day so you can make moves all day long.

Traders who expect to be in trades for a few weeks don’t have to spend as much time tied to their computers.

What’s my tolerance for risk?

Traders who stay in positions for several weeks usually give their positions a wider berth. That way, normal volatility doesn’t force them to sell too soon.

This also means they have to be able to tolerate some moves to the downside.

Shorter-term traders take smaller losses, but they need to be able to pull the trigger and take those losses quickly.

What strategy makes the most sense for me?

Do you like to trade based on earnings reports, volatility, charts, valuation, or news events such as drug approvals? Certain catalysts will lend themselves to shorter- or longer-term trading styles.

If you like to trade the markets based on volatility, your trades will likely be short-term. If you love trading stocks based on upcoming catalysts, your trades will have a longer duration.

If you’re new to trading, start off by asking yourself which style appeals most to you.

If you’re an experienced trader and you’re not achieving the results you want, these questions may help shed some light on whether you’re trading in a way that best suits your personality.

Note: I recently developed a new strategy that combines the excitement of trading with the peace of mind of “generating income with limited risk” through up and down markets.

According to our backtest, over the course of 2024, this strategy had a stunning 86% win rate and could have turned $9,000 into nearly $34,000 – a total return of 274%!

That’s nine times better than the S&P 500… during a record-setting bull market!

Click here to learn more.

Marc Lichtenfeld
Marc LichtenfeldChief Income Strategist, The Oxford Club

Marc Lichtenfeld is the Chief Income Strategist of The Oxford Club. After getting his start on the trading desk at Carlin Equities, he moved over to Avalon Research Group as a senior analyst. Over the years, Marc’s commentary has appeared in The Wall Street Journal, Barron’s, and U.S. News & World Report, among others. Prior to joining The Oxford Club, he was a senior columnist at Jim Cramer’s TheStreet. Today, he is a sought-after media guest who has appeared on CNBC, Fox Business and Yahoo Finance. His book Get Rich with Dividends: A Proven System for Double-Digit Returns achieved bestseller status shortly after its release in 2012.

Marc is the Senior Editor of The Oxford Income Letter, which is based on his proprietary 10-11-12 System. He is also the Editor of Technical Pattern Profits, Penny Options Trader and Oxford Bond Advantage.


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