Ten Powerful Psychological Traits of the Rich Trader
- They have the ability to admit they were wrong and get out of a trade. They know the place where price proves them wrong.
- They have the ability to not only close a losing trade but reverse and go in the other direction when it is called for.
- The rich trader is not trying to prove anything about themselves they are focused on making money.
- They do not fall in love with an idea, currency, commodity, or stock they will make trades based on price action.
- Rich traders know that the market action is their ultimate boss regardless of their opinions.
- No matter how sure they are about a trade they still ALWAYS manage the risk.
- Rich traders get more aggressive when winning and trade smaller or take a break during a losing streak.
- A great trader is one that can admit to anyone that they were wrong.
- Rich traders do not believe their own hype, they know they can not really predict the future they can only react to current reality and the probabilities.
- Rich traders love what they do, win or lose.
When you are trading like that, it is hard to be beaten. Time is your friend.
Contrary to common folk wisdom that financial traders share a certain set of personality traits, e.g., aggressiveness or extraversion, we found little correlation between measured traits and trading performance. The study finds that subjects whose emotional reaction to monetary gains and losses was more intense on both the positive and negative side exhibited significantly worse trading performance. Psychological traits derived from a standardized personality inventory survey do not reveal any specific \trader personality profile”, raising the