In this article, we will talk about what type of personality is likely to succeed in trading. We will also talk about how you can make improvements in your personality to become a great trader.
While any personality type can succeed in trading, some personality types are better suited for trading than others. Also, I believe that you can always improve or shift your personality to succeed in trading by developing certain habits. We will discuss these habits in this article as well.
Be obsessed with data
Most successful traders are obsessed with data and tracking their trades. Some people are naturally obsessed with data and some people are not. If you are not, you still can make yourself to be data-oriented with a bit of practice, that is if you want to become a successful trader.
The process of tracking your trades and analyzing your trades can be simplified with a good trading journal. Our trading journal (which is completely free) will help you to simplify tracking your trades. You can get our trading journal here. Our trading journal can be used with google sheets or excel. Remember to commit to tracking every single trade you take. Just by doing that you can significantly improve your trading.
Introvert vs Extrovert
Both introverts and extroverts can succeed in trading. But there is a better chance for introverts to succeed than extroverts due to a few reasons. Most extroverts find it harder to focus on sitting down, staring at the computer screen, and analyzing the charts.
To be really successful in trading, for a certain period of time, you have to stay isolated or not be social. Most traders get a breakthrough in their trading by isolating themselves and analyzing the charts and taking trades day in and day out.
Analytical Thinking Is Important
To become a successful trader you have to be good at thinking analytically (Technical Analysis). You should be able to analyze the charts. If you are good at analytical thinking you are more likely to be profitable with trading.
Identifying Patterns
To become good at trading you should be able to identify patterns. There are a lot of trading patterns you will need to study, these include different candlestick patterns and chart patterns. It is not enough to study these you should also be able to identify these patterns as well. I believe that anyone could develop the ability to identify these patterns as well.
Systems Thinking
System thinkers are good at trading as well. A systematic approach to trading can be very beneficial. You should be able to set systematic rules and follow these rules to become good at trading. Also, systematic trading strategies are much is easier to be transformed into an automated trading robot.
Habits to become a Successful Trader
There are 3 main habits you must develop in order to become a successful trader. These are
- Analyze the charts every single day (5 days a week for forex) for at least 1 hour (depending on what type of trader you are as well ).
- Journal and track every single trade you take. This is a crucial habit that you must develop to become a successful trader. If you track your trades, over time you will know what works and what doesn’t.
- Back-test your trading at least a couple of times a week. I usually backtest on the weekend when the forex market is closed. Do not neglect to backtest, you can do backtesting with a trading view or MetaTrader. If you are not sure how to backtest, check out this guide.
There are a few more habits that you can develop which can supplement to make you better at trading, these are:
- Mediate for 10 minutes daily. This can improve your focus so that you can make better trades. Sometimes I fail to do this, but this is something I wish to do consistently.
- Workout out daily or a few times per week to keep yourself healthy. This will help you become a better trader as well.
- Develop the habit of reading the news. This is more important for a fundamental analyst than a technical analyst.
Myers Briggs Personalities For Trading
While all personality types can become successful with trading, the top two Myers Briggs personalities to be successful with trading are INTP and INTJ. The 3 important letters here are the (I), (N) and (T).
(I) stands for an introvert. As discussed previously, introverts are more likely to succeed with trading compared to extroverts.
(N) stands for intuition. Intution is important. You have a good sense of the future and be able to be imaginative. You also should be able to think about how specific information is connected.
(T) stands for thinking. Thinking is more important than the feeling when it comes to trading. You should be able to think critically to become a great trader. Also, you should be able to control your feelings and emotions when trading the financial markets.
Other Qualities of Successful Traders
Successful traders never give up. They have a high level of perseverance when it comes to the financial markets. You must develop the habit of never giving up to become a profitable trader.
Trading is full of ups and downs, losses, and profits. As long as your trading wins are larger than your trading losses you will be a profitable trader.
Also, you have to be patient when it comes to trading. You should be able to create your own trading rules and follow them religiously while making small adjustments over time.
You should improve your risk management skills as well to be a profitable trader. You should also become a learning machine. Learn about trading much as possible and apply what you learn.
Conclusion
As discussed in this article, there are certain personality types that are going to be more successful with trading compared to other personality types. But remember that you can always develop certain habits that will help you to become a successful trader. If you are interested in learning how to trade the forex market step by step, make sure to check out our guide here.
