The Planning Forex Trader
In this article, we will discuss the Planning Forex Trader as part of our series on Dr. Van Tharp’s trading personality types.
The "Planning Type” of trader is one of the few psychological profiles that Dr. Tharp determined are predisposed for the trading arena and have very high chances of succeeding in the Forex trading business in the long run.
Planning Forex Trader Qualities
The typical Planning Forex Trader is someone who is straightforward and decisive. They like to get things done in simple and effective ways without losing too much time or energy. The planning type of trader has no problem with quickly taking on the role of a leader when the situation requires it or when it’s necessary.
Planning Forex Traders are great at planning and goal-setting, thus creating trading plans and following them is something that comes rather naturally. This is a major advantage for them because as we know planning is crucially important for trading.
The Planning Forex Trader possesses all three qualities for becoming a successful trader as Dr. Tharp has described.
The Planning Forex Trader is:
- Able to comprehend the “big picture” and link the different important points in it in order to use that information in trading.
- Excellent at making logical and analytical trading decisions based on concrete – factual information.
- Generally resolute and strong-minded and is also able to execute tasks in sequential order.
Planning Forex Traders have the capacity and capability to generate new trading strategies effortlessly - as easy as 123. This is something that comes naturally to them and is one of their primary strengths in trading.
Another very beneficial ability that these traders possess is recognizing and connecting the different parts of the puzzle in the market. As a result, they are usually good at spotting patterns and even discovering new market patterns which they can then implement in their trading plans.
Finally, one great characteristic that generally all successful people tend to share, and one that the Planning Forex Trader also has is the perseverance and the habit to complete and finish things. This is a tremendously important characteristic for trading because, as we know, succeeding in Forex is far from easy and, at the end of the day, only a long-term and persistent commitment to success can get you to where you want.
Their characteristic to be very logical can get in the way of their success sometimes. While being, logical is a great trait for trading, being too logical can make the “Planning Trader type” completely unaware of his/her emotions.
This can cause problems because even though they are not aware of their emotions, they will still be affected by their emotions and in turn, their trading results will be affected as well.
This type of a trader can sometimes take a trade before it’s actually the right time to take it. This can happen because of their ability to quickly spot opportunities, and although they may still be right in the end, a trade that is taken too early will still be a loser if it moves significantly against the trader.
The last challenge for Planning Forex Traders is linked to the previous one and it’s that they may also get into the trap of “needing to be right”. This is a challenge that must be addressed because it can cause them to abandon their stops and trading plans when a trade goes against them.