Continuing our series on Dr. Van K. Tharp’s trading psychological profiles, the next trader type we will discuss in this article is the Independent Forex Trader.
Independent Forex Trader Qualities
The Independent Trader type is a master of theoretical ideas and abstract concepts and generally values knowledge and understanding more than relationships, social interactions, and pretty much everything else.
These types of traders will usually be quiet, focused and independent. They tend to be skeptical and will normally analyze everything in-depth before taking any actions. They are preoccupied with the explanations behind all things that interest them and, therefore, will usually seek logical explanations for why certain things occurred in the market and how they occurred.
The Independent types of traders can move to creating a trading plan only after they are certain they understand everything about a specific concept (e.g. a given trading strategy). If they don’t fully understand a trading strategy or system they will disregard it regardless of how much profits it generated in past track records.
They can quickly tell if a particular trading system will fit their style or not. Because they develop a deep understanding of things, naturally they can quickly and efficiently determine whether something will work or not. This is a highly valuable skill for traders and one that gives independent traders a huge advantage.
This is also a huge advantage and a very important trading strength that they need to leverage on to gain the maximum benefits.
The biggest challenge for the independent trader tends to be finding a balance between their work life and their social life. To be successful in their careers, all human beings generally need to balance work-related activities with social and family time.
Independent Forex Traders have a tendency to be workaholics. They can often get too caught up in their work to the point where they neglect their relationships with family and friends which can then lead to these problems transferring into their trading.
Specifically, as we discussed earlier they may reject perfectly sensible and workable trading systems just because they don’t fully understand how and why exactly the system works. Obviously, independent traders will miss out on the benefits and profits that the system generates in such situations.
Related education and FX know-how:
Forex Education - Basics:
Forex Education - FX Brokers:
Forex Education - Technical Analysis: