What personality should a winning trader have? Does it even matter?

[Exscudo]

Guys, I'm wondering, do you think there are any specific personality characteristics that can make you a more successful trader?
Or on the other side of the equation - are there any personality characteristics that should keep you from trading? What do you think?

 

[ffsear]

Guys, I'm wondering, do you think there are any specific personality characteristics that can make you a more successful trader?
Or on the other side of the equation - are there any personality characteristics that should keep you from trading? What do you think?

When you trade real money you'll quickly find out what your weakness are. No demo account will do this for you. You then need to build a strategy around your weaknesses and exploit your strengths..

There is always a big difference between the trader you want to be and the trader you should be.
Took me about 10 years to figure that out..

 

[cantagril]

FF is right and that it is by trading that you will discover whether you have the "right" personality. That said, having that personality doesn't necessarily mean that you'll make money and furthermore, not having it doesn't necessarily mean that you'll lose your shirt. Hence the above-mentioned decade

Some clues as to why you might have the wrong personality are: can you walk away from the table any time you like? Can you walk away when you've taken a loss/made a profit? Do you have any compulsive or addictive traits? Are you impatient...and if so, can you still stick to a plan whilst being so? Can you concentrate on what you want to concentrate on and for as long as you think is necessary?

On the matter of trading to find out whether you're a trader - I would add to the above by saying that you don't need to jump into the deep-end from a demo account into a serious money one. You can quite easily start trading for real on a nano-account at 10 pence a pip and that will tell you a lot. If you become a good manager and are consistently profitable over time then you can gradually scale up until you're ready for a more grown up account.

I can't remember who said/wrote this but it's quite useful: "Learn for free. Practice cheap. Trade for profit."

 

[Nowler]

Just to add to Cantagril's point about nano accounts.
I preferred to move to a real money account very soon after I started. Essentially I learned how to operate my brokers platform on the demo, and then moved to a micro account.

I deposited £35 into it and after 2 months was down 68%.
I still trade that same account and have made a rule that I cannot deposit more money until I get back to break even (only 28% down now).
While there will certainly be some new factors when I move to an account in the thousands, but for now I can learn quite a lot for essentially peanuts.

I am not focused on monetary value. It's % growth and % drawdown that I am focused on.
Once I have that fine tuned, it's just a matter of scaling up (apart from the psychology difference trading pennies per pip, to trading pounds per pip).

Good luck and steer clear of the fools and deceivers

 

[cantagril]

In case you haven't already found this, here is T2W's sticky on the subject:

FAQ - Nature Vs Nurture – are Good Traders Born or Made?

SHORT ANSWER Good traders = nurture; great traders =nature. Probably! You’ll note from the FAQ title that the question asks whether good traders are born or made. Arguments have raged about this for yonks and, doubtless, will continue to do so for a while yet. Less contentious is whether great...

www.trade2win.com

 

[NVP]

Guys, I'm wondering, do you think there are any specific personality characteristics that can make you a more successful trader?
Or on the other side of the equation - are there any personality characteristics that should keep you from trading? What do you think?

the Turtles experiment demonstrated that people from all backgrounds can achieve trading success

Personally I feel there are some key elements that can assist the trading process but nothing guarantees it

aside from the obvious analytical side and problem solving mentality the more important elements that allow a trader to become long term profitable lie in his Emotional and psychological capabilities

Resilient nature - tough real world mentality
Determination
incredibly strong work ethic
Ability to be objective and see bigger picture
total belief in ones own abilities and competence (without the Ego)
Positive Outlook (as in all businesses you have to be positive)
extremely open minded and flexible to change (as thing do change)
ability to walk ones own path and not be too swayed by other opinions and ideas

theres probably more but these spring to mind having worked with a lot of people

N

 

[cantagril]

....... the more important elements that allow a trader to become long term profitable lie in his Emotional and psychological capabilities
Resilient nature - tough real world mentality
Determination
incredibly strong work ethic
Ability to be objective and see bigger picture
total belief in ones own abilities and competence (without the Ego)
Positive Outlook (as in all businesses you have to be positive)
extremely open minded and flexible to change (as thing do change)
ability to walk ones own path and not be too swayed by other opinions and ideas

theres probably more but these spring to mind having worked with a lot of people

N

That one in red above would delight Messrs Dunning and Kruger

 

[Stan1T]

Guys, I'm wondering, do you think there are any specific personality characteristics that can make you a more successful trader?
Or on the other side of the equation - are there any personality characteristics that should keep you from trading? What do you think?

Personality? Hmmm, most successful traders I know are dead boring. If you can't control your emotions in this business then I doubt you'll be around long.

Most systems that work are like software programs. They don't fluctuate, they don't have opinions, they just execute. When the parameters are met, they work. It is that simple.

Think people get too caught up in the hype and supposed glamorous lifestyle portrayed in hollywood.

 

[J Livermore]

Guys, I'm wondering, do you think there are any specific personality characteristics that can make you a more successful trader?
Or on the other side of the equation - are there any personality characteristics that should keep you from trading? What do you think?

I would like to add one more personality trait to the good ones that the others have written.

Humility.

Never think that you are bigger than the market. Never think that you are a better than other people. In most trading situations you won't have to worry about having an ego for too long because the market will be happy to cut you down to size by handing you some major losses.

Be aware that improving your trading is a life long adventure and is not something that will happen in the short run. It takes time and a dedicated effort on your part.

 

[Nowler]

...

Humility.

Never think that you are bigger than the market. Never think that you are a better than other people. In most trading situations you won't have to worry about having an ego for too long because the market will be happy to cut you down to size by handing you some major losses.
...

I couldn't agree any more mate!

The markets effectiveness at chopping me down is one of the things about trading that I like the most.
It's a little arousing if I'm honest

 

[malaguti]

I couldn't agree any more mate!

The markets effectiveness at chopping me down is one of the things about trading that I like the most.
It's a little arousing if I'm honest

that'll also be chopped down if another thread you started is anything to go by

 

[tomorton]

the Turtles experiment demonstrated that people from all backgrounds can achieve trading success

Personally I feel there are some key elements that can assist the trading process but nothing guarantees it

aside from the obvious analytical side and problem solving mentality the more important elements that allow a trader to become long term profitable lie in his Emotional and psychological capabilities

Resilient nature - tough real world mentality
Determination
incredibly strong work ethic
Ability to be objective and see bigger picture
total belief in ones own abilities and competence (without the Ego)
Positive Outlook (as in all businesses you have to be positive)
extremely open minded and flexible to change (as thing do change)
ability to walk ones own path and not be too swayed by other opinions and ideas

theres probably more but these spring to mind having worked with a lot of people

N

The Turtles! Ooh crikey! Its still controversial.

Actually, although they all learned to trade the same system by the same rules, didn't half of them burn out?

Then again, different Turtles were allocated different levels of capital and some of them knew this, so it was by no means a standardised sample group. Maybe we shouldn't even judge the Turtles episode as a success or a failure.

 

[tomorton]

But in general, choice of appropriate trading style is much more fundamental than choice of a strategy.

 

[cantagril]

But in general, choice of appropriate trading style is much more fundamental than choice of a strategy.

Appropriate to one's personality, n'est-ce pas?

 

[barjon]

The Turtles! Ooh crikey! Its still controversial.

Actually, although they all learned to trade the same system by the same rules, didn't half of them burn out?

Then again, different Turtles were allocated different levels of capital and some of them knew this, so it was by no means a standardised sample group. Maybe we shouldn't even judge the Turtles episode as a success or a failure.

Yes, half of them burnt out, but after they left the turtle fold and started on their own and started tinkering with the rules they had been taught and disciplined (by the group) to follow.

So, as far as personality is concerned, self-discipline is high on the list

 

[Pat494]

Many good points have been made above.
The trading can become a grind or be a pleasure. Make it the latter.

 

[Pat494]

Love him or hate him but he has that inspirational something.

 

[Exscudo]

When you trade real money you'll quickly find out what your weakness are. No demo account will do this for you. You then need to build a strategy around your weaknesses and exploit your strengths..

There is always a big difference between the trader you want to be and the trader you should be.
Took me about 10 years to figure that out..

That is true man, I've experienced this for myself. You found out something about yourself when you win for the first time, but you really find out a lot when you lose. There is no experience like it in the world.

 

[Exscudo]

FF is right and that it is by trading that you will discover whether you have the "right" personality. That said, having that personality doesn't necessarily mean that you'll make money and furthermore, not having it doesn't necessarily mean that you'll lose your shirt. Hence the above-mentioned decade

Some clues as to why you might have the wrong personality are: can you walk away from the table any time you like? Can you walk away when you've taken a loss/made a profit? Do you have any compulsive or addictive traits? Are you impatient...and if so, can you still stick to a plan whilst being so? Can you concentrate on what you want to concentrate on and for as long as you think is necessary?

On the matter of trading to find out whether you're a trader - I would add to the above by saying that you don't need to jump into the deep-end from a demo account into a serious money one. You can quite easily start trading for real on a nano-account at 10 pence a pip and that will tell you a lot. If you become a good manager and are consistently profitable over time then you can gradually scale up until you're ready for a more grown up account.

I can't remember who said/wrote this but it's quite useful: "Learn for free. Practice cheap. Trade for profit."

So, basically what you are saying is - no matter what inherent personality traits you have, your determination, wits and will power will decide whether you can be successful or not.

 

[Exscudo]

Just to add to Cantagril's point about nano accounts.
I preferred to move to a real money account very soon after I started. Essentially I learned how to operate my brokers platform on the demo, and then moved to a micro account.

I deposited £35 into it and after 2 months was down 68%.
I still trade that same account and have made a rule that I cannot deposit more money until I get back to break even (only 28% down now).
While there will certainly be some new factors when I move to an account in the thousands, but for now I can learn quite a lot for essentially peanuts.

I am not focused on monetary value. It's % growth and % drawdown that I am focused on.
Once I have that fine tuned, it's just a matter of scaling up (apart from the psychology difference trading pennies per pip, to trading pounds per pip).

Good luck and steer clear of the fools and deceivers

Thank you for sharing your experience man!