Trader Personality Types
In determining your personality type, you’re going to examine four aspects of all personalities. These aspects are labeled Energy, Decisions, Attention, and Lifestyle
Introverts find energy in the inner world of ideas, concepts and abstractions. They want to understand the “whys” of the markets; they concentrate and tend to be reflective thinkers. Introverts want to develop systems that integrate or connect the information that they learn about the markets and use this information to make more informed decisions
Extroverts find energy in things and people. They prefer interaction with others, and tend to be action-oriented. Learning about the markets will be best accomplished in groups or talking with others. They also tend to think on their feet and talk more than listen.
|Trades well in a group
|Not good on own
|Hesitates to make decisions
|Not afraid to act
|Takes too much advice
|Wants to understand
|Doesn’t work well with others
|Think on their feet
Intuitive traders seek out patterns and relationships among the facts they have gathered. The trust hunches, or “gut feelings” when researching the markets. Chances are, they like using charts as indicators and as such spend a majority of their research looking at historical charts.
Sensing traders choose to rely on their five senses. They are detail-oriented, they want facts, and they trust them. Sensing traders prefer organized, linear, and structured research.
|Uses hunches or gut feelings
|Likes Charts and Indicators
|Looks for things that support a bias
|Hesitant to make decisions
|Looks for relationships
|Reluctant to admit failure or learn from error
Thinkers decide things impersonally based on analysis, logic, and principle. They place great weight on objective criteria in making a financial decision. They naturally see flaws and tend to be critical or research. Thinking traders prefer clear goals and objectives.
Feelers focus on human values and needs as they make decisions or arrive at judgments. They are more apt to make a trade based on their understanding of market psychology. Objectivity is often over-clouded by emotions and can lead to poor trade. Be mindful of your emotions!
|Clear goals and objectives
|Feelings enter trades
|In tune with Markets
|Thinks too much on winning trades
Judging traders are decisive, self-starters and self-regimented and probably trade because the “want to.” They also focus on completing the task, knowing the essentials, and they take action quickly. They plan their trades and trade their plan.
Perceptive traders are curious, adaptable, and spontaneous. They start trading wanting to know everything about it, and often find it difficult to trade successfully. Perceptive traders often postpone doing research until the last minute. They are not lazy, rather merely seeking information up to the very last minute.
|Doesn’t take advice
|Curious about learning
|Takes action quickly
|Slow to learn new things/concepts
|Wants to know all
|Wants to know all
|Trades the plan
INSIGHT OF THE DAY
Your personality affects the way you trade, whether you realize it or not.