The Values Driven Trader

One of the ten out of fifteen psychological trader profiles from Van K. Tharp’s personality types which have a good chance of achieving success in trading is the Values Driven Trader type.

This trader personality type’s focus is on doing their own thing and they tend to concentrate on the material aspects of trading. They often derive their sense of meaning from ideas, relationships and material possessions.

Values Driven Trader Qualities

The Values Driven Trader is generally motivated with making money. They usually have two of the three core qualities essential to the make-up of a good trader. These are:

1. The ability to see the big picture when trading, and
2. Decisiveness when taking action as a trader.

Nevertheless, Values Driven Traders often make their trading decisions based upon feelings or principles instead of on the more solid ground of logic and analysis. If not managed properly, this tendency can be extremely detrimental to their trading success.

Trader Strengths

The Values Driven Trader personality type usually demonstrates a strong ability to easily grasp the inner working of the market. Such traders also tend to have a useful facility in developing low risk trading ideas that have good potential returns.

In addition, Values Driven Traders tend to be motivated by their sense of value and are often self-directed, independent thinkers.

Trading Challenges

The Values Driven Trader has a tendency to get caught up in society’s status quo and so might find themselves trading “the way they should” according to the beliefs of others, rather than what would be more appropriate in a given situation.

This tendency of the Values Driven Trader to follow the market herd can lead to poor performance results when trading.

Also, because of their focus on principles, Values Driven Traders may be inclined to overlook important details requiring their attention. They might also sometimes act upon insightful feelings — without having their ideas confirmed analytically.

Furthermore, they may become frustrated when their trading systems do not give them the performance results that they feel they should be getting.