Your Personality & Trading
There are many misconceptions about what type of people successful traders are, a few are trader’s are creative, mavericks, and aggressive personalities. This is just not true. It is quite the opposite in our estimation. It was said of one very successful trader we know that “he seemed to worry more about what he wanted on his pizza then his position in the market”. His approach to life and his approach to trading could be described as laid back.
Successful traders tend to be good listeners, thoughtful, very patient, humble, and even sensitive. While we might not describe our own Head Trader here at www.Trading-U.com, Al Gaskill, as laid back, we can say he is very thoughtful, and one of the most patient individuals we know. Bill Williams who is quite a successful trader himself, and who also holds a doctorate in psychology, calls the quality he looks for in people to be successful traders as being “reality orientated”.
Being reality orientated in a word means having the ability to listen. In our estimation it also means being someone who understands life is about “sharing the stage”, and being aware of not just their own surroundings, but of the needs of others in those same surroundings. Individuals like that, who know and admit they have weaknesses, and understand the emotions brought on by attachment, will be able to learn from their mistakes, and take direction much easier than people who want the spot light, and see themselves as being smarter and more deserving then others on that “stage”. Being competitive helps for sure, but in a way that says the individual wants to help themselves for the right reasons. Reality oriented means someone accustomed to going with the flow, and not trying to orchestrate the flow. It also means understanding that there are at least two sides to every story, and knowing the value and freedom of not being judgmental. Being laid back is much better than being aggressive or emotional. It is far easier to absorb something while relaxed than it is while tense. Likewise it is far easier to grasp the reality of a situation when you have no attachment to the outcome. It is that axiom that makes demo trading so important. It is far easier to learn in a simulated, less fearful environment, where mistakes are learning experiences rather than financial losses. Save the over-thinking for important subjects such as what you want on your pizza.
Jay Norris is the author of Mastering the Currency Market, McGraw-Hill, 2009 and a Trading Instructor at Trading-U.com. To schedule a complimentary, interactive tutorial with Jay on determining market direction and hear more about “Live Market Exercise” go to One on One Tutorial
DISCLAIMER: Forex (off-exchange foreign currency futures and options or FX) trading involves substantial risk of loss and is not suitable for every investor. Risks include the potential that changing political/economic conditions may substantially affect the price/liquidity of a currency. Investors may lose all or more than their original investments.