As a trader, you should have a persona and style in order to become successful in trading in various financial markets. It’s essential for you to be aware of how your character and thinking can affect your dealings. Here is the list of different personality types of trader, showcasing the strong and weak points of each. Take note that this article describes the following in general.
The Indecisive Trader
In a continuing basis, traders normally experience downfall, recovery stage, and accomplishment. You can be an indecisive trader if you’re uncertain of the trade or doesn’t have yet an idea of what will happen next and unprepared to take the necessary actions.
It’s critical that you evolve from this trait. As a trader, your role is to take the proper actions — implementing and responding to guarantee the best return for your investment. There are several steps that you can do to recover from a trade collapse in the right manner.
The Cautious Trader
The choices you have to make to put on trades are essential to your realization. If you are a “cautious trader,” the most significant aspect that you value when it comes to trading is safety first. But, this personality can be limiting, and rarely breaking to new highs because you’re making few transactions. You have the tendency to put too much thought into every decision to make before executing it because you are watchful about the inconsiderable potential outcome.
Some merchants who have this persona are obsessed not to commit mistakes. They are meticulous in gathering all the information in an attempt to avoid the risks and doubts in the market. Also, they seek out others’ views and hope that estimations assure the right verdict. Typically, they miss some opportunities due to hesitancy.
The Conservative Trader
You are a conservative trader if you are seeking proof and confirmation before entering a trade. Typically, when talking about trading breakouts, you standby for the breakout to happen before making any pullback. Conservative traders usually opt to take long positions. They analyze the situation before taking a step.
Vital note: Depending on the situation, being conservative entails low risk and low reward.
The Aggressive Trader
If you are eager to purchase or trade with expectations like the trade setup will soon improve, or there will be reversal without waiting for validation, you are an aggressive trader. This personality is the opposite of the conservative trader.
By having this trait, you have the edge over conservative traders because you have can have better risk-reward trades. But, take note as well that being aggressive may not be a good idea if you will do a reckless gambling style of trading.
Vital note: Depending on the situation, being aggressive entails high risk and high reward.
The Momentum Trader
Taking either long or short position, momentum traders are individuals who aim at hastening of the price of stocks or company’s income. They take a particular position for as long as there is a continued motion in the same path. Most traders who have this trait become experienced because they are persuaded to what is going on in the news. Momentum traders look for stocks that stream by a high percentage or volume.
The Adventurous Trader
The remarkable trait of an adventurous trader is having high confidence in him. With his thrill-seeking tendency, he is consistent in engaging with numerous new dealings with larger contract sizes. Since he is not conservative in controlling his reserves, there is a tendency to expose his assets to an increased risk of loss.
Take note: In the stock market, especially in margin trading, several aspects must be considered to expect a good return.
The Gamble Trader
This type of broker is related to the adventurous trader — venturing in large contracts and exposing to high risk. He is determined to gain for more, but most of the time, losing too much. This scenario happens if the trader doesn’t invest time and sweat into learning and utilizing proper evaluation methodologies.
Good to know: Most traders remain on top by avoiding making quick money and bizarre profit without risk antipathy. They practice other traits that can be beneficial to prevent a short and disappointing journey in the market.
The Copy Trader
A broker who doesn’t take the time to learn as an individual, a “copy trader” is not self-dependent in his dealings. He gathers the opinions of analysts and willing to follow their good word. A lot of traders are like this. They usually have an excellent overall view of the market because they consume various views and vital points from experienced traders and investors.
The Flexible Trader
If you are not only set to your own ways, you are a flexible trader. You conduct dealings based on the direction of the market. A trader who is resilient can quickly adjust to market situations. Most flexible traders succeed because they are both cautious and vigilant in accessing their current position in the market. They change their point of view accordingly.
The Educated Trader
This kind of trader is willing to invest time and effort to learn and enhance his skills. He has some traits similar to the other traders, such as the following:
One More Thing Before You Go
Now, what kind of trader do you want to be? In finance, achieving a successful return, either by going long or short in markets, depends on the type of your personality, along with your trading strategies. No matter what dealings you will opt to, failure should not be your hindrance to getting back in the saddle. With the right strategies and traits, return to your trading and begin rebuilding.