Successful Forex traders come from different backgrounds in terms of education and work hence no particular formal education is necessary for someone to be a profitable Forex trader.
There are some specific skills, attitudes, and attributes, however, which undoubtedly are highly beneficial in helping one to make profits in trading.
Still, in no way the possibilities and options to succeed are limited.
The fact that two traders with completely different background and personalities can be equality successful makes this game that much more fun and attractive. It is an ever-evolving, persistent process of self-discovery and improvement.
Tharp’s Trader Personality Profiles
Nonetheless, Forex traders can still be categorized into different trading personality types which accurately describe them both as individuals and traders.
So, although everyone can find his own way to success in trading, he will still fit into a particular type of a trader and in most cases, he will do best if he uses trading strategies and tactics that are compatible with his own psychological profile.
For example, a trader who is a risk-seeker will unlikely be excited to sit and analyze currencies all day only to take 1 trade per month. He is more likely to be a day-trader, probably trading volatile news events where he can quickly take several trades in a short period of time and get his dose of excitement for the day.
Now, on the other hand, another trader who is very contemplative will not like the noise of day-trading and hence he is probably going to find longer-term trading more suitable. Both can succeed by improving and mastering their own specific trading styles but their paths will be substantially different.
Dr. Van K. Tharp, a veteran psychologist and a renowned trading psychology coach discovered these psychological profiles and organized them into the most common types of trading personalities. An expert in the field, Dr. Tharp has conducted extensive research on the subject and has written many books throughout the decades.
Below are the different personality types that Tharp categorized.
These trader types included:
Accurate Trader,
Administrative Trader,
Artistic Trader,
Adventurous Trader,
Detailed Trader,
Facilitative Trader,
Fun Loving Trader,
Independent Trader,
Innovative Trader,
Planning Trader,
Socially Responsible Trader,
Strategic Trader,
Supportive Trader and
Value Driven Trader.
As is evident from the way Dr. Tharp named the different personality types, each of them is characterized by a fundamental personal drive. Each personality type has different motivations in life which are automatically reflected in everything they do including their trading activities, choices and ultimately their trading profits.
We will see when we discuss each one specifically, that not all of them have the same prospects to easily succeed in trading. Some will need to work harder while others have a naturally more compatible psychological profile for the trading business and will usually need to put in less effort to become consistently profitable.
Ultimately, however, no one is predetermined for success and everyone can succeed with determination and hard work. In fact, it’s not that different from achieving success in any other field of work.
So, in the following articles we'll get into them to see what each personality type is all about.
