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Every trader has a different personality type when it comes to day trading, and each one has their pros and cons.
In this article let’s discuss the strengths and weaknesses of each day trader personality type.
Day traders with the extrovert personality trait have an advantage with their networking skills. It allows you to build relationships with other professional day traders, and gain valuable information and insights that can help you make better decisions.
Since extroverts like to be in a fast-pace environment, you’re able to capitalize on day trades to make more money.
Where the extrovert fails as a day trader is that you’re more prone to emotional volatility, thus making you overconfident on a trade, impulsive trading decisions, or can be easily distracted, this can cost you greatly.
Day traders with a introvert personality are less emotionally attach to trades, which can help them make more rational decisions, during volatile market moments. Since day traders with introverted personalities are less emotionally volatile, they’re able to have greater focus, and concentration to complete market analysis, allow them to make quick decisions, ignore the noise that media and headlines may bring.
Where introverts fail as a day trader is their lack of networking opportunities. The lack of networking may limit them to valuable information and insights.
Introverted day traders are also less risk-averse, allowing them to protect their capital, but limiting the amount of profits they can make day trading.
Day traders with the sensing personality type are able to focus on facts and the present moment.
Your strength as a sensing personality type is at your level of detail, which allow you to identify opportunities in your technical analysis. You’re also able to make great trading decisions based on past experience, helping you avoid repeated trading mistakes.
Where sensing personality types of day traders have a hard time is their overconfidence. Sensor type day traders, are likely to have “must be right” mentality which may cause you to over risk on a single trade, and are less likely to change your mind based on market conditions.
Day traders with a intuition personality type are great at coming with new and creative trading strategies. As a intuition personality type, your gut tells you all, making you to able to adapt the ever changing market. Being able to be adaptable is a wonderful trait to have for day trading.
Where intuition personality types fail as a day trader is that they can be overconfident, and tend to be very bias about their feelings – seeking information that helps confirm their beliefs instead of being unbiased about price action during trading.
Day traders with a thinking personality type are logical and very surgical of when to enter and exit a trade, thus making them pretty accurate. This personality type is also great at risk management, preventing themselves from overexposing themselves to the market.
Where this personality type falls short is in their flexibility and speed. Thinkers need time to think, which creates slow reaction time. During volatile moments in the market, this can be a con for the thinker personality type.
The feeling personality type is one of the worst type of personality types for the stock market. This type of personality rationalizes their reasoning with their emotions.
By making decisions with your emotions, you allow your emotions to dictate your trading plan, and risk management.
The judging personality type can be a great day trader, because you see the market for what it is. You’re unbiased and just follow price action on the stock market.
Where the judging personality type fails as a day trader is that they may be too rigid on their approach. Another flaw about this personality type is over risking on a trade. Your judgement on the stock market might make you over confident, leading you to risk too much and potentially losing a lot.
A day trader with a perceiving personality can outweigh its cons. When you have the perceiving personality type as a day trader, it’s easier for you to spot patterns during intraday trading, and making you very adaptable helping you stay ahead of the curve.
Where this personality type falls short is that you may be early on the trend, or you may overanalyze the market, making you less confident on trades.