# Trading strategies and personality



## johnnyg (30 April 2009)

Hey guys, im curious to hear your thoughts and I guess self analysis on your personality (trading related) compared with your style of trading. 

I myself would say that I _can_ be very impatient, when I make up my mind on something I want it to be done as soon as possible and hate waiting, however in saying that im pretty easy going and relaxed. With the style of trading that im currently looking into (EOD trend following) I think im going to need an attitude adjustment to be fully comfortable with that style of trading.

There are a number of reasons im going with trend following but the biggest factor is that I have a 9-5 job where I cant constantly be in front of a screen intra-day trading (which I possibly think would suit my current personality? better).

Now I fully understand and accept that trading (or getting to a point in time where you can be constantly profitable) is a long journey, and as tech/a has said in the past 







> Dont feel the need to be busy to make money (or something along those lines)



however im curious as to others personalities and how it relates to your own trading style.

Regards John 

(mods please feel free to correct my horrible spelling in the Topic Header)


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## Aussiest (30 April 2009)

Tech/a and his infinite wisdom!! I hope i can adopt some of his attitudes and skills one day 

(okay, no more emoticons )

Personality and trading - very interesting point you raise.

Anxious: sometimes close trades too early, compromise on entry points.

Solution: work on it, walk away from screen. Plan trades better, tell myself my entry point "will" come, remember times i stuck to my guns. Practice with smaller position sizes until i get the hang of it.

There are others. Risk taking etc. Sometimes too big of a risk taker, but i've learned to temper that.


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## tech/a (30 April 2009)

I think it important to be decisive.
People who can make decisions quickly and with conviction will do better in my view than procrastinators.

The over analytical will also be poor traders in my view as they will be forever procrastinating over their analysis.

People who can accept being incorrect (Rather than wrong) in their analysis. Who can move on quickly.


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## kam75 (30 April 2009)

johnnyg said:


> I myself would say that I _can_ be very impatient, when I make up my mind on something I want it to be done as soon as possible and hate waiting, however in saying that im pretty easy going and relaxed. With the style of trading that im currently looking into (EOD trend following) I think im going to need an attitude adjustment to be fully comfortable with that style of trading.




I had the same problem.  Impatience.  I adjusted my trading style to match my impatient personality.


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## Aussiest (1 May 2009)

kam75 said:


> I had the same problem.  Impatience.  I adjusted my trading style to match my impatient personality.




How did you do that Kam? I am curious.

I think i've got to adjust my character traits in order to improve my trading; I had never considered ajusting my trading style to suit my personality.


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## Aussiest (1 May 2009)

tech/a said:


> I think it important to be decisive.
> People who can make decisions quickly and with conviction will do better in my view than procrastinators.
> 
> The over analytical will also be poor traders in my view as they will be forever procrastinating over their analysis.
> ...




That is so true. It takes more courage to admit you're wrong than to continue with the trade imo.

And the procrastinating bit: at first i would have said you need to 'make decisions' before taking the trade, but experience in the market and watching it move should make that process easier. You'd hope


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## investorpaul (1 May 2009)

Aussiest said:


> How did you do that Kam? I am curious.
> 
> I think i've got to adjust my character traits in order to improve my trading; I had never considered ajusting my trading style to suit my personality.




I think it would be harder to adjust your personality. Changing your trading style is just adapting to how you "operate"


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## Aussiest (1 May 2009)

I don't really want to change my personality per se. Just the limitations that hold me back from trading better. Eg, anxiety. Learn to *hold* (but then again, learn to let go when you've made a wrong decision).


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## Temjin (1 May 2009)

How can you have missed this thread. 

https://www.aussiestockforums.com/forums/showthread.php?t=10864&highlight=personality+test

and links related to above

www.iitm.com/articles/*Personality*-Type-and-Trading.htm

*www.tharp*tradertest.com


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## Wysiwyg (1 May 2009)

Aussiest said:


> Learn to *hold* (but then again, learn to let go when you've made a wrong decision).




For discipline, one must adhere to pre-trade strategy.

For example .... I will enter the stock on the next full moon, I will hold for 20% profit or I will exit at 2% loss. No ifs or buts.


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## tech/a (1 May 2009)

Aussiest said:


> I don't really want to change my personality per se. Just the limitations that hold me back from trading better. Eg, anxiety. Learn to *hold* (but then again, learn to let go when you've made a wrong decision).




I personally think the ways to over come this are.

(1) Capital base
Trade with a sound capital base,if $5000 is your nett worth then dont put it at risk you'll be too emotional as 5 hrs pay can go in a few minutes.

(2) Trade parcel size.
Keep this moderate and risk .05-5% on any one trade,depending on capital base,learn how to calculate parcel sizes from Fixed Fractional methods.

(3) Constantly minimise risk.
If I have a wide from an initial buy and the stock stagnates I will raise the stop level daily (as its not moving in my direction).
Move stops to break even when you are 1R in profit ot 1 ATR in price move.
Get used to taking small losses. You will.
Id rather 5 small losses than 1 big one as I have had 4 more opportunities to profit.

(4) Take advantage of movers and look to add to positions when they consolidate from a run up rather than take profit. I give them up to 40% ff their highs in any timeframe,if you are seeing moves to new highs after 30% pullbacks then your on a winner.
You can place these trades as seperate trades to your initial trade---million ways to work *creative* Money Management.
Remember the longer the consolidation the more likely your looking at a corrective phase. So then sell out at tested tops.


Gotta go.


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## johnnyg (1 May 2009)

kam75 said:


> I had the same problem.  Impatience.  I adjusted my trading style to match my impatient personality.




What was your previous trading style? And what is your trading style now Kam?

Thanks for that link Temjin, ill go threw it tonight and take the test to see what type of trader am I.  There's quite a few familiar names in that thread showing similar results (for the type of trading that they do) so I should be able to gauge myself from there.

I'm thinking about getting into the Futures Markets, more then likely the FTSE for a few hours a night and try to develop a short term system (intra-day/scalping) just to try and sooth my impatience, and more so to see if I like that style of trading and whether I can be profitable at it.


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## johnnyg (1 May 2009)

Well I had abit of spare time over lunch so I took that test. Seems im an Adventurous Trader. Out of the 3 A/traders that posted in that thread, 2 I had specifically in mind for this thread being T/H and MRC.


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## Mr J (1 May 2009)

The only part of my personality that affects my trading is timeframe. I'm laid-back and don't like to feel rushed to do anything. I prefer to strategise and watch a position play out, and only have to occasionally glance at the chart. While I can make quick decisions, it becomes so much of a grind that I will lose motivation. This is important to me, as my major flaw is the inability to force myself to do something I don't want to do.

For the most part I've traded fast timeframes, maybe the equivalent of a 1 min chart. A few weeks ago I slowed the timeframe on the ES and as I started the SPI to that more of a 5 minute chart, and have found it more enjoyable and more profitable (better maximising gains, but also minimising distraction since the trading is slower).

Trembling Hand's $800 rags to riches experiment is most impressive to me not because of the result (which of course it still awesome), but the ability to put up with that kind of grind. I'd shoot myself after a few days.

Edit:

That personality test nailed me - innovative trader. I recognise the strengths and weaknesses.


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## kam75 (4 May 2009)

johnnyg said:


> What was your previous trading style? And what is your trading style now Kam?




When I started trading ASX stocks back in 02, I used to buy the breakout of patterns and resistance and set my stops and profit targets all according to plan.  I would then wait for the trade to work out.  I used to give it more room and time to work out.  I used to hold a loss and not get put until my stop was hit, always hoping for the trade to turn around and get profitable.  Sometimes it did, but mostly it did not.

These days, stocks to me are like *****s.  If I don't get a run for my money, I take it back.  I use time stops.  I don't wait around.  Usually if I'm not in profit in a few days, I either tighten my stop right up or I dump the dog.  I have rules for everything and follow them.  If my trade does this, I do that.  It's all written down on paper.  I'll hold a stock from anywhere to few days to 6 weeks or so if it starts to trend.  

Anyway, the biggest lesson was to dumb it down.  Keep it simple.  Forget all the complex strategies out there.  Price-Volume-OBV and a moving average do the job for me. My trading style reflects closely what Stan Weinstein teaches in his book "Secrets for Profiting in Bull & Bear Markets".


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## johnnyg (4 May 2009)

Thanks for the reply Kam. Being only in the early stages of finding and developing a system that works for myself its always good to hear from people who have gone threw the same situation.

I definitely like the thought of a time aspect and its something Im going to look into further.


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