The Planning Trader

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

According to Dr. Tharp, the Planning Trader makes up one of two trader types that have the highest likelihood of becoming great professional traders.

Planning Trader Qualities

The main qualities displayed by the Planning Trader personality type consist of being concise and to the point. This will tend to facilitate them assuming a leadership role, if called upon.

In addition, the Planning Trader has the ability to quickly develop and apply trading systems that will meet their needs.

The Planning Trader has all three qualities essential to becoming a great trader. These are:

1. The ability to see and understand the big picture, along with what connections and possibilities exist,
2. The ability to make decisions based on logic and solid analysis, and 
3. The ability to be orderly, decisive and to do things in sequential order.

Trading Strengths

A Planning Trader will easily spot inconsistencies and logical aberrations in the market and be able to profit from them.

This type of trader also enjoys long term planning and learning, as well as staying well informed — all positive traits in a trader.

Also, the Planning Trader will generally be comfortable establishing positions and will tend to have the determination needed to see their ideas through to completion.

Trading Challenges

The Planning Trader will in many cases get so caught up in trading that they will fail to notice when they are getting emotional.

Also, too much planning may stifle the trader in analysis paralysis when it’s time to pull the trigger on a potentially profitable trade.