How Trader Personality Affects Trading

A recent pilot study addresses the interesting topic of how a trader’s personality affects his or her trading performance. The researchers focused on six personality traits and their impact upon trading:
Locus of control – The degree to which a trader believes that the ability to be successful is within his or her control;
Maximizing tendency – The degree to which individuals seek optimum outcomes from their decisions, not just outcomes that meet or exceed expectations;
Regret susceptibility – The tendency to look back on outcomes of decisions and focus on negative aspects, creating regret;
Self-monitoring – People’s tendency to track and control their own thoughts, feelings, and behaviors;
Sensation seeking – The degree to which people seek varied and stimulating experience;
Type A behavior – The degree to which individuals are driven to achieve.  (more…)

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