What is your trading personality?
I believe as people we are different, we have different ways of doing things. Our personalities play a big role in the type of businesses or careers that we end up choosing . I am fully aware that as traders, we are all different in our personalities and needs, therefore we ought to have or prefer different styles of trading. Most people fail in this because they try to do what others are doing. If it is how the gurus are trading , they also assume they should do it as well, overlooking the most important thing which is personality, when it comes to choosing a career, you cannot ignore your personality and expect great success, career assessments are often conducted to see where the person can excel or do well career wise. Same thing goes for Forex trading, one need to find themselves first and their personality to understand which type of trading is best suited for them.
QUESTIONS BECOME ANSWERS:
To find out the type of trader that you are, you need to ask yourself some few questions, are you impulsive, nervous or are you a calm person in general, do you get anxious when things don’t go your way, those kind of questions can actually give you an idea of what style you should be adopting when it comes to Forex trading.
Here is the list of few personalities that i think you can be able to identify your own style and be able to choose the trading style that can best suit you, understanding your needs is key.
Simplicity and effectiveness is what this type of trader looks for. Complicated systems confuses this type, he/she is just “cool” with just simple yet effective system, steadiness is also important to this type.
This type is a nervous person by nature, this trader becomes so nervous to handle multiple open positions, has a low risk tolerance and does not feel comfortable taking long term trades, probably if this type happens to enter a long term trade, he/she will have sleepless nights thinking of what might happen in the market, if the trade will make it and so forth, so in short, this trader is best suited for small volumes, and should be staying away from system that relies heavily on leverage, because all this can cause negative emotions, short term trades is best suited, is that you?
This type prefer to have a very little contact with the system and not really a fan of computers if i may put it that way, he/she prefers a system that is able to run on its own, i think this type can do well on autopilot trading or just copying other traders, because they will not have to worry about which trades to take and when and why.
This type of trader is up for variety, not only looking at trading currencies, but commodities and indices as well , like Dow Jones, Ftse, Dax, Jse and many more. Complicated approach to trading is what this type look for, he/she doesn’t mind having different trades opened at once, total opposite of a minimalist, with this type, there has to be trades open more often. This type is the one that is “heads up” with what is happening economically and in the know when it comes to economic events. Any system that is too simple, will probably frustrate type.
this is the type of trader who prefers high frequency trading (HFT) and risk appetite for this type is too high, scalping is best suited. This type looks for higher gains due to an increased risk. Slow trading systems are too ‘”tame”for this type of trader. he/she wants to be there, hands on and prefer to do things on his/her own. This type is the one that sometimes fail to see the thin line between trading and gambling, can easily gamble because trading high volumes is no issue for this one, he /she has eyes set on profits, driven by the need to make it big, forgetting that what he/she can make reflects what can be lost as well. If you are this type of trader, you can be very profitable if you can learn to control your emotions and stay away from over trading and you really have to be careful with your lot sizes,”toning”it down, always helps.
Now that you can at least identify yourself and you can see which category best describes you, you can choose wisely and act rationally when taking trades instead of acting emotional. With all being said, i still say we are individuals, what works for me might not work for you, but if it happens to NOT WORK for you, do not go around saying it doesn’t work, probably it is because of your personality or your preferences. Market is there to accommodate different personalities, find your own. It will help you not to jump from one strategy to another and to stop following what works for others, instead find what works for you and there is no other better way to do so than knowing your own personality and preferences, some people do not know themselves. In closing, respect the market and it will return the favor and “shower” you with nice profits. Understand yourself first and it will be easier to find the strategies that work for you. Do away with gambling mind-set and adopt a business person mentality, thank you for reading, share the post using share buttons below and help other traders to identify their personalities.