Whether you like it or not what kind of person you are will determine what kind of trading system will find more at ease trading. As we know some people prefer to trade long term, some short term and some just like swing trading. Some like to trade using MT4 and some like to trade using spreadbetting. Whilst practical reasoning will play a big part in such decisions a lot of it is pre-determined by our personalities.
Whilst some say only a certain ‘type’ of person can be a successful trader I believe it is more about getting the trader to play to their strengths. This is especially true when trading at home for yourself. rather than as an employee for an institution.
It is said there are many types of personality. Take a look at some of these different Myers-Briggs personality types
You will notice that one or two stand out immediately to you. Once you have a better understanding of your own natural behavior you will be able to manage your trading in a way that suits you rather than you spending hours trying to adapt to.
If for example you are a “thinker” you will by nature love the analysis side of trading more than the actual physical side of trading. The ‘doer’ will more than likely be a risk taking short term trader. Just because you may fit one of these personality traits does not mean you have to go changing your behavior. In trading just acknowledging your behavior for what it is is enough to bring about a change in fortune.
Just because you are a “‘doer” does not mean you have to change and become a long term trader. You just need to accept that you may be making decisions based on impulse and need to think through your actions more clearly. Maybe adding in a further conformation signal maybe enough to make you hold back the
trigger a little longer.
If you have an overly caring or sensitive nature you could well just need to learn not to take trading personally. You may have to learn how to compartmentalize your day so trading is just your work and does not reflect on who you are as a person.
These may be little things in the bigger scheme of things but they can really make a difference to your success as a trader. So take some time to think about why you trade the way you do and consider how you can use that to your advantage.
