20 Jul 2023
What does success look like to you?
26 Jul 2023
Here’s a question for you…
How can two people have access to the same trading strategy, yet have different results?
Well, in large part, it comes down to your personality type.
What is your mind biased towards seeing? How have you been conditioned and how does your personality filter that information?
Who we are shapes the way we work and the decisions we take.
In turn, who we are, and our underlying personality type, affects the decisions we’re going to take whilst trading.
There are many varied categories of personalities to consider but for the purposes of today I am only going to reference four: Driver, Expressive, Amiable and Analytical.
Let’s take a quick look at each of these and their associated strengths and weaknesses.
Drivers are fast paced individuals who are very decisive. They like to get to the point immediately and are bottom line driven. They like to achieve and are driven to succeed. They want options and results. They tend to make decisions quickly.
Their strengths as a trader are that they are not afraid to press the button and place a trade and they can see the great opportunity that learning to trade can offer them from a time, money and energy perspective.
Their weaknesses are that they don’t put enough time into their analysis, they have a tendency to run before they can walk, and they have the proclivity to give up just before they get a breakthrough.
I’m an Expressive so speaking from experience… We want everything to be fun and enjoyable, and similar to Drivers we are fast paced and quick to make decisions. We show a lot of emotion and are passionate people. We like adventure and new experiences, and we want to be recognised for our achievements and our work. We enjoy incentives and buy into a vision.
Our strength as it relates to trading is that we are also able to press the button and take action. Not only this, we are also excited to take the journey to becoming good traders as we can see the vision for what our lives will be like if we’re successful, which can help us to work consistently towards making that happen.
Our weakness is that we require a lot of motivation. We want to enjoy what we are doing every step of the way, which isn’t always going to be the case with trading. There are times when the work can feel repetitive so we really have to work hard in order to persevere and stay the course.
Someone with an Amiable trader type is on the slower scale of the personality spectrum – not in terms of mental ability, but in terms of their decision-making process. However, once they do finally make a decision, they are all in and get to work towards achieving that goal. An Amiable type is very people oriented and likes to make friends and be well liked, and they do very well with a framework to work within as they are great at following instructions.
Their strengths are that if they have the right guidelines given to them, they can follow them accurately. As a result, it is often the Amiable type that makes progress very quickly in trading when they have the right structure and support around them.
Their weakness is that they often lack confidence and are slow to develop the confidence that trading requires, making it difficult for them to press the button and place a trade, especially in the early days. They can also be overly emotional.
The Analytical type is also on the slower end of the decision making process. They like to gather as much information as possible before making a decision. They love detail and then they love the detail within the details. They are very controlled in their emotions. They are numbers driven and require multiple sources of proof.
Their strength is that their commitment to research and putting in the required analysis and testing is not beaten by any other personality type. Their data is accurate, in-depth and provides them with a fantastic understanding of the markets they are trading as well as their strategy.
Their biggest weakness is that they can find it very difficult to actually place a trade. This is in part caused by the habit of over complicating trading rather than keeping it simple. They like every new indicator and want to understand every candle pattern when in reality they may only need two or three to be successful. Relating to this, they often get stuck in the learning phase and never make the transition to live trading.
I am not convinced any particular personality type makes a better or worse trader – each has their own strengths and weaknesses.
I know, I know, I’m sitting on the fence, but there’s a good reason for this.
Someone who is more of a Driver, for example, is likely to blow an account faster than someone who is Analytical.
But does this mean Analytical is better than Driver? No, not necessarily.
An Analytical type, for instance, has a tendency to overthink and under commit and not actually take the trades that will make them money either.
It’s not about changing your personality type, it’s about managing your personality type.
For me, this is where mentorship and coaching plays an incredibly profitable role.
The guidance and expertise of someone who has been there, done that, and helped many others, will fast forward your path to success.
It will save you from the self-sabotaging elements of your personality, and also save you a great deal of time, money and energy along the way.
But that’s enough about the virtues of mentorship, for now…
Do you want to find out your trader personality type?
You’re in luck, I’ve created a fairly quick quiz that will tell you in less than a few minutes.
But remember – it’s not about changing your personality type, it’s about managing your personality type.