Trading and Personality Type

I like Van Tharp’s stuff. It’s more trading oriented than investment oriented, but a lot of the ideas can apply in both senses.

Here’s a series he wrote on what strategies seem to suit different personality types.

http://www.vantharp.com/articles/personality-type-and-trading.htm

That was far too long for me to read all of, but interesting from what I did read.

My gf is obsessed with the Myers Briggs stuff, I think its somewhat interesting, but I believe moreso that her personality type is the type to really value what a personality test says. I think the data is more interesting on an aggregate level than an individual one

Interesting that something as subjective as being in touch with your feelings can make you a more robust and logical person. An exercise I am trying to make a habit out of journaling things like my interpretation of market behaviour/ global events as well describing reasoning behind every trade I set up. I have reconized in my early days trading there is, of course, no straitforward formula to making the best choices with the information you have. Subjective elements of personality work against you… but also for you.

Sourcing the article, my “Dionysian Temperment” (will to be independant and free) worked for me when I bought BAC under 15 during the no rate hike/ bank hate fest in September. However, this same personality trait worked against me over the summer when markets were stagnant and I would keep placing ill thought out trade just to do something. I lost a lot of money trying to be a rebel when there was nothing to rebel agaist.

Knowing your personal triggers and cues, and then writing about how they influence your choices helps you sort out when to harness the power of your quirks and when they will lead you astray.

You def have to know your strengths and weaknesses, and to be aware of any emotions, but in the end your personality type does help shape your trading style. I tend to be pretty good at picking intra-day bottoms on hammered down stocks and love making a few quick bucks on market overraeaction, but you have to be able to stomach getting run over like a truck for a while.

I.e. VRX today, in @ 76.86 shit dropped $2 after I bought it and I could have gotten steamrolled. Out a few hours later @ 80.75 though so its all good

+1… respect …non-hacksaw

There are various ways to make money. Carry, momentum/trend, or value/contrarian. Understanding your personality type is important for figuring out which way works for you.

Understanding how you respond to threats and risks is pretty important too, because often times the most rational of people start acting irrationally if they have underestimated their risk and adrenaline is determining what they do.

Very true, when money is on the line I’ve seen intelligent people make bad choices. Behavioral finance is very interesting to me, I’m excited for that bit in L3

lol first priority in that trade was that there was no fucking way i was holding that POS overnight

Oh I remember looking at this Myers-Briggs personality stuff once, it was mildly interesting, and slightly voodoo. If I remember I came up INTJ “architect”.

But yeah, it’s absolutely relevant in trading. You need to understand how you think/feel/react, and how various market participants tend to react. Also institutions sort of have an overall personality, like big life insurance companies – very slow to react, measured, predictable, safe.

The article might has pointed that out, I couldn’t read it, too long and rambling! Maybe I have a “get to the point” personality type??

im ISTJ

Architects are INTPs. The INTJ is the mastermind. I only correct you as I’m an INTP… :slight_smile: There are very few NTs in the world. The few here are obvious from their posts.

^ Are you sure? I’m not an expert but it says at the link below INTJ = Architect. I normally don’t buy into voodoo crap, but the test result did fit – strategic, tactical, maneuvering, private, logical yet intuitive, idealist yet cynic, contradictions that can barely exist, see human exchanges as retarded, prefer out of the spotlight (analyst not sales).

http://www.16personalities.com/intj-personality

wangs.

Soft science that is.

i’m INTJ too — I hate sales