BTricks

Custom Search

Monday, December 3, 2012

The Socially Responsible Trader


The next psychological profile in Van K. Tharp’s series on trader personality types is the Socially Responsible Trader. 
This trader type would suggest an individual whose focus is primarily on the values and people that are important to them. They also tend to favor having a life outside of the trading arena that is congruent with their values.
Van K. Tharp’s series of psychological trader profiles consists of fifteen trader types of which ten of them are most suitable for successful trading. The latter group includes the Socially Responsible Trader. 
Socially Responsible Trader Qualities
The Socially Responsible Trader has a loyalty to their values and on how these relate to themselves and others with whom they interact. In the world of trading, this quality may be a hindrance because the market does not have a social conscience and generally does not take prisoners. 
While this type of trader has the ability to achieve success, it will generally come as a result of the trader finding opportunities in keeping with their values and not due to their logical evaluation of a trading opportunity or system.
Trading Strengths
The Socially Responsible Trader will generally go by their gut feeling when trading and will only take trades which “feel right” to them. 
This tendency can be an asset when managed with appropriate risk control parameters in place. 
Trading Challenges
As mentioned in the previous section, the Socially Responsible Trader will tend to wait and act upon their “gut feeling”. This response may not always be accurate and can present both a challenge as well as an asset to this trader type. 
In addition, this type of trader usually needs to be able to evaluate and implement an objective trading system in order to overcome their potentially counterproductive “seat of the pants” trading tendencies.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.