Leveraging MBTI traits for trading...

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Relating MBTI to trading success

LONGGGG article that goes through many facets of MBTI and relates them to trading:
<> each 'MBTI' letter (E/I, N/S, T/F, J/P)
<> each temperament (SJ, SP, NT, NF)
<> each 'cognitive function) (Se, Si, Ne, Ni, Fe, Fi, Te, Ti)

Some quick hits:

This article, the first in a series, on individual differences or personalities is to help people determine where they are. Jack Schwagger has suggested from his experience interviewing "market wizards" that the most important element of successful trading is having a trading system that fits your personality. As a result, I'm going to base this article on the fact that knowing your personality type is important to finding out where you are in your journey toward wholeness.

If you haven't taken the Investment Psychology Inventory, you have two choices. Take the profile and find your personality type and determine your strengths and weaknesses for trading. Or, as a second solution, you can got to the following web site to get a basic Myer-Briggs type test for free: Personality test based on Jung and Briggs Myers typology. When you get your type, look it up on Google. The sites you find will tell you a lot about yourself. And in this eight part series, we'll tell you how your type relates to trading.

Three personality types—the ENTJ (known for their ability to develop strategies), the INTJ (known for their scientific reasoning), and the ISTJ (the trustee type person)—combined should constitute about 12% of the population. However, at this time these three groups represent 50.1% of our current sample. The NTs constitute 45.6% of our sample, probably because these people are always attempting to improve themselves.

Introverted intuition is especially valuable in allowing problems or situations to be viewed from multiple perspectives. For example, when you are having difficulties in trading, IN will allow you to view it from your own perspective, from a dissociated (watching yourself) perspective, from the perspective of a trader who has the opposite side of a position from you, from the perspective of a hypothetical Super Trader—anything you want. It is a very valuable mode of operation. IN skills showed a slight positive correlation with trading success.

People with highly developed EN can easily come up with speculative or imaginative solutions to a problem. They can jump from the present condition to the outcome without considering a step by step process. They are great at brainstorming and continually come up with new ideas. More of our top traders showed EN dominance than any other processing mode.

More traders in our sample showed IT dominance than any other cognitive style and this skill was important to the top traders. However, if you exclude the top group, it showed a negative correlation with trading success—probably because IT skills are useless without the ability to develop a useful hypothesis for trading.

A person for whom IF is highly developed will probably be a very poor systems trader, always preferring to go with internal feelings over external signals. This type of trading would probably only work if the person was so highly trained as to have very accurate internal feelings. In our sample, IF processing showed a negative correlation with trading success and it was seldom dominant among top traders probably because these people are not tuned into what is going on in the market.

I would expect someone with dominant EF processing to be a poor trader. However, it showed a positive correlation with trading success in our sample. EF processing might be useful if other modes of processing were also highly developed (e.g., ET, IT, EN) because it could help a trader understand what other traders are doing without necessarily influencing how he trades. For example, a trader with highly developed EN skills might come up with some important insights about what is happening in the market. And if those skills are combined with strong ET or IF skills, it could result in excellent trading decisions.

I've learned the hard way that it 'pays' to know yourself! Its allowed me to call out into the open things that I'm good at, and things I'm bad at, and to keep them both in check. Take some time to learn about thyself! :smart: :idea:

 

[childofprodigy]

That's funny (and not suprising to be honest)....

I'm personally an XNTJ