Commander in Pips: I’ve thought a bit and decided to offer you a small chapter, dedicated to personality of traders. First, it will be a little faster chapter that will let you relax a bit, second – it will let you look at yourself from another point of view. We will discuss some features of traders of different kinds, so that will help you probably understand what type is close personally to you.
Commander in Pips: I’m glad. Ok let’s start then. As you already probably understand – each person in the world is unique. Since traders are also persons – they are unique too. Even twins are different as physically as mentally. They like different food, music, dress, choose different career, spend their vacation in different places. Also they can be different in their politician choice – democrats or republicans, in terms of the US. In other words, they look differently at the same objects.
Pipruit: I think this might be exciting, since I like this kind of psychology lessons.
There is no need to talk about people who are absolutely different not only in terms of personality but also in terms of national culture and history, mentality but also education and other things. So we should not feel any surprise that there are so many views on markets also. Some of us prefer fast, often but small profit, while others prefer to even lose a bit while they will take multiple attempts to catch the trend, but then they will be with a solid trend that allows them to get much profit.
Our differences also can be seen when applying the same trading systems. There are not so many well-known trading systems and most traders use one or another with some adjustments and/or combination with another, or even without any adjustments. Still, although they apply the same approach – the results always are different. This comes from our personality. This is a driving force of our world, otherwise how boring the life could be. But here I want to tell you that personality is important for another reason.
The point is that if you will force your personality into a way of trading that is unnatural to you, that is absolutely mismatched to your personality – you will come to frustration, and your trading will be burden instead of a journey.
Pipruit: I see, and how can I understand what type of trader I am?
Commander in Pips: I offer to you some specific types of trading styles. Depending on different circumstances that we meet in our life – you will be able to figure out some common issues that take place in your life also. In other cases specific signs of your character will help you to make choice.
Still, initially I would like to remind some foundational term – time. As your first step you should deal with that important substance. Depending on your conclusion, later choices you will easily make.
Commander in Pips: You’ll see. Very often, or even as a rule, newbie traders start from some reading about trading – may be one book, may be one and a half, and they think that they are ready to start. And they are starting. After 1-2 successful trades, as many traders call “beginner’s luck” they start to think that trading is a piece of cake and they have sufficient background to catch up against Mr. Buffet (or at least G. Soros) and outrun him. But later, after so good and promising a start they start to see the meltdown of their trading account day by day – they turn to the conclusion that something is wrong and this is not so simple as they’ve thought initially. Probably Mr. Buffet knows and can do much more that they do. And here they understand that they have to inquire much to succeed and this inquiring demands much time.
Pipruit: And what do you mean by “time”?
As we already said – learning never ends. It means that despite how experienced a trader you are – there is always something that you can study. It is difficult to reach consecutive progress in trading without study on a constant basis. You can take some pauses in study – that’s Ok, but can’t let yourself “just trade” and think that you know enough. Sooner or later the market will force you to back to study, since the market is driven by the wisest traders and they are studying all the time. With their influence the market shifts every time, and becomes more and more cunning. If you will not understand what is going on – say goodbye to your money.
So, what am I speaking about? You have to estimate how much time you can dedicate to trading – to read and study, trade, analyze charts, news, work on your trading system, and analyze performance – be with the market. For some there is no problem to dedicate full-time to trading. With “full-time” I understand absence of any other job. Still most people have a job, study in college or school and other daily occupations so they can't spend 8-10 hour days with the market eye-to-eye. Reasonable understanding of this issue will let you to appoint realistic targets – that’s all. Not all traders have to be scalpers or short-term traders and if you are not the trader of such a kind, some think that you can’t be a trader at all – absolutely wrong. Even if you trade during a small part of the day and apply long-term trading you can be a trader. Just apply your trading plan and the routine according with your personal issues, as we’ve discussed in previous chapter.
Commander in Pips: That’s excellent. The world is not circling just because of trading. And this understanding will let you create a reasonable trading plan and develop your own way of how you will deal with markets.
Pipruit: Probably you’re right. Currently I can’t be a full-time trader – I’m studying in college and have a part-time job.