The Independent Trader

he next psychological profile in Van K. Tharp’s series on trader personality types is the Independent Trader.

This type of trader has a predisposition for independent thinking, which can be a key asset in the volatile world of forex trading.

Independent Trader Qualities

The Independent Trader tends to favor theoretical ideas and abstract concepts over personal interactions, and they generally value knowledge above all other things.

As a result, this type of trader may generate original ideas or disprove existing ideas on the market. Independent Traders tend towards the unconventional in both their lives and their trading styles.

More often than not, the Independent Trader is also an independent thinker, and they will usually try to develop a logical explanation for how the markets work before developing or implementing a trading plan.

Trading Strengths

The Independent Trader usually enjoys sorting out the reasons for market conditions.

They also tend to be intellectually stimulated by finding profitable trades, which can lead them to develop excellent low risk trading ideas.

In addition, the Independent Trader can generally come up with a new trading style or strategy, and they will tend to have a good sense for when a trading style is a good match for a trader.

Trading Challenges

The Independent Trader may reject perfectly workable trading systems because of a lack of understanding if the logic is not clear.

Also, many traders that fall into this trading personality type get too involved in the markets to the detriment of their social and family life.

This may affect their marriage, relationship with their children and other social relationships.