The Innovative Trader

The next psychological trader profile from Van K. Tharp’s personality types is the Innovative Trader.

This type of trader’s focus is on understanding their world and absorbing and interpreting new information.

Innovative Trader Qualities

Innovative Traders tend to be intuitive in processing information, which can be an excellent quality in a trader. Nevertheless, the accuracy of the information can present a risk to the trader if the information they receive is inaccurate.  

Innovative Traders also tend to be quick thinkers, with the ability to react to market conditions as they happen. This could either be very profitable or could save them a lot of money in fast moving markets.

Other helpful qualities of the Innovative Trader include the following:

1. Generating conceptual trading possibilities,
2. Analyzing trading options strategically to create and implement trading systems, and
3. Being able to read people.

Trading Strengths

The Innovative Trader has the ability to see the big picture and to come up with the appropriate trading system to be profitable.

Nevertheless, perhaps because of their abundance of creativity, sometimes their ideas are not followed up on.

Also, this type of trader can usually easily determine whether a trading system will work well for them or not.

Trading Challenges

The most challenging thing for the Innovative type of trader personality consists of the possibility of boredom from falling into a routine.

Trading can be very exciting at times. Nevertheless, for seasoned traders, hours of boredom watching screens are often the price paid for those few minutes of trading excitement.

Also, Innovative Traders are prone to making emotional trading decisions when under stress, which could be a recipe for disaster when trading.