Regular readers of this, rarely updated blog, will know I am part of Steve Howe's MG World, an excellent trading community centred around swing trading the nag markets but taking all sports into account. This community continues to grow and being part of it means engaging with traders at every level of experience. As you might expect, a good number are novice traders.
Over the last year and over the last few inductions into MG World, my attention has been particularly drawn to the psychological approach of new traders. If you've been trading for at least a year, you'll already understand that the method comes first, after which, you learn the battle with your own mind and emotions is not only a much bigger foe to defeat but a war that has to be won in order to achieve success.
Now, we all know there are a few well known traders, some famous for being genuine, others just infamous, and some of them do blog, tweet, record etc about psychology (notably Caan Berry who's YouTube channel is very good), offering insight into overcoming your own psyche and a lot of it is good, helpful stuff. However, whilst all good training/e-book providers deliver something around a pragmatic approach or mindset, none that I have seen (I've seen pretty much all of them) offer anything in depth to assist the novice trader in identifying their personality traits and how they might help or hinder in the early stages of their trading pursuit.
During a Skype chat this week, a MG member confirmed he'd reached the point of being a scratch trader, after just 18 months of discovering trading. Impressive, I think. But how much further forward might this trader be had he known his personality in more detail?
What am I getting at? Well, in simple terms, I'd like to rectify the above. So, over the next 6 months my trading will be scaled back, to focus on a non-related project, but also to really understand how examining personality, at a very early stage in the trading journey, might highlight areas of focus and, potentially, shorten the journey.
Ask yourself this, if someone had told you, right at the beginning, your personality lends itself to taking unnecessary risks or risks that are out of balance with reward, would you have taken steps to remove the chance of these traits creeping in?
I happily and readily admit, after taking a trading specific test, that my personality type sits in conflict with that of the ideal trader. So, fear not. There is hope...
I would very much like to hear from traders of all experience levels to understand the difficulties, past and present, who are happy to help identify, not common mistakes but the personality traits that lead to them firstname.lastname@example.org