In his research on trading psychology, Dr. Van K. Tharp identified fifteen psychological profiles of traders. Further, he differentiates 3 sections of these 15 trader types each with different probabilities for success in the long term. The Socially Responsible Trader falls in the group of Forex traders that can succeed if they are prepared to put in a lot of effort in order to overcome their challenges and weaknesses.
Qualities of Socially Responsible Forex Trader
According to Van K. Tharp, Socially Responsible Forex Traders deeply care about their values and as a result, try to act only in a manner that is in line with those values regardless whether it is related to their social life or to their work as is trading.
The primary goals of the Socially Responsible Trader type are not only related to making profits but also protecting their values. A socially responsible trader, for example, may not trade or invest money in assets or financial instruments that may bring harm to others or to the environment – regardless of the potential profits it can bring.
So, although these traders may very well possess the needed capacity to trade and invest profitably, they may not always choose to do so if those investments are against their core ethical values.
Following a risk management system is something they should be able to easily do in most cases.
Also, the Socially Responsible Forex Trader doesn’t seem to suffer from emotional trading as much as some of the other types, except when those emotions are related to their core values – as we discussed above.
Furthermore, this sort of trader generally must have a profitable and unbiased trading plan that will help them to limit the effects of holding onto losing trades which they may be inclined to do.
In the end, there are certain characteristics and habits that are desirable for all traders and Socially Responsible Traders should put in the work needed to overcome their potential weaknesses and get to the other side of successful traders.
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