WHY A TEST AND WHAT IS PERSONALITY TYPING
You will often hear me say that successful & profitable trading at it's core, is made up of 3 key pillars. These are:
1. You need a trading system that gives you signals and rules on when and how to enter and exit the market.
2. You need self-discipline in order to execute that trading system and stick to the rules of your system in good and bad times.
3. And most importantly, you need to have the right psychology and mindset when approaching and trading the markets.
If we had to rank these 3 key areas of successful trading as a percentage in terms of importance and in relation to each other, I strongly believe that System only contributes 10%, Self-Discipline contributes 20% and Psychology can contribute up to 70% of your success rate as a trader. Since psychology and personality play such a massive role in your trading so it's a really good idea to get to know yourself a bit better.
This free personality test is based on Carl Jung’s and Isabel Briggs Myers’ personality type theory. It does not really consist of assessing trading or trading knowledge per say, but it is instead based on the way that different people react to various events, how they see and process the information about an event and what actions do they take in response to that. The trader’s response to these situations would in turn determine the way that they might behave in a trading situation as they operate in the financial markets. Once the test responses are entered, the resulting personality type is calculated to determine which of the 16 personality types you would fall into.The purpose behind traders taking this test is that their personality type can be a strong determinant in their overall trading success.
Furthermore, going through this valuable process can help you to assess your psychological suitability for participating in the trading arena. Each one of the 16 personality types conforms to a particular trading psychology profile. The different strengths and weaknesses of each personality type can then be studied in greater detail to understand the best approach you should take towards the financial markets. The Motrendtum Traders Personality Test measures the four dimensions of your personality which will give you an in-depth framework about your unique personality style, your approach to managing energy, processing information, interacting with the markets, and organizing yourself as a trader.
There are no right or wrong answers and no “good” or “bad” types. The assessment highlights your natural preferences and strengths while helping you to also become more aware of potential blind spots. The assessment helps to articulate what you already know about yourself but perhaps you have not been able to understand or leverage it properly. The information contained in this test will give you the tools needed to begin applying and understanding your personality type for the benefit of your trading by providing the tools to maximize strengths and minimize or re-frame weaknesses.
HOW CAN UNDERSTANDING YOUR PERSONALITY TYPE IMPROVE YOUR TRADING
We tend to fall on one of two sides of a spectrum when it comes to understanding yourself and others. We either think we are highly unique and that no one thinks or behaves as we do, or we assume that other people naturally see things the way we see them, and share our preferences and understanding of the world. However, the many interpersonal conflicts that crop up in our personal and professional lives convince us that this isn’t exactly true. What accounts for our differences? We wonder why some struggle to put on a trade or accept a loss while others are able to do it without hesitation and find the task so simple, or why a concept makes complete sense to the rest of the crowd but not to us. Why do some people get so bent out of shape when a trade does not play out as they had hoped?
THERE IS AN EXPLANATION
Personality typing demonstrates that there are reasons why we like or dislike the things we do, why we work the way we work and why we interact with markets in a manner we tend to prefer. It isn’t random, it’s our personality type which ultimately has an effect on how we approach the market, trade the market and how we perceive the information the market is giving us. Personality typing helps to answer the question: What kind of trader personality type do I have and how do I best approach the markets?
THE KEY IS UNDERSTANDING WHAT PERSONALITY TYPE YOU ARE
This allows you to maximize personal strengths while minimizing weaknesses. In short, learning about your personality type will help you to:
1. Understand our own natural strengths, preferences and inclinations;
2. Be more selective in your trading methods and the way you approach the market;
3. Discover ways to make small changes in your trading to enhance your success rate;
4. Work in harmony with the markets;
5. Better navigate areas of conflict
Knowing your needs and preferences leads to greater productivity, and allows you to understand why you approach the market in a certain way, while also helping you to avoid becoming frustrated. As you come to know and understand yourself, you will find your groove and why you do things or respond to the markets in a certain way. The personality type spectrum describes and highlights your unique styles and that not everyone solves problems or sees things the same way you would. The market is the ultimate Zero Sum game. What I mean by that is for every one person's buying a stock there has to be someone else on the other side of that trade thinking the complete opposite and would rather sell the stock because they see no further value. Those 2 people are trading the exact same stock but have 2 very different perspective about the way they are interacting with the market. By understanding your personality type and bias’ you are able to better understand why you perceive the information the market is giving you in a certain way. Then you will be able to apply the correct thinking to a trade that will help you to be profitable in the long term.
CHARACTERISTICS THAT HELP MAKE A SUCCESSFUL TRADER
These elements consist of the following general personality characteristics:
1. The ability to see and understand the “big picture”, to be able to connect events and to recognize trading opportunities;
2. The capacity to use logic in your market analysis to base your trading decisions on;
3. The tendency to be decisive, orderly and able to conduct operations in sequence.
A trader’s potential for success can then be assessed depending on how many of these characteristics a trader has or is willing to develop.
Certain types of traders show greater initial trading success potential. Nevertheless, other types may be better off letting others manage their money unless they are prepared to perform considerable work on themselves.
There are four categories of energy styles used to describe the 16 different personality types. They are "Introvert & Extrovert", "Sensing & Intuition", "Thinking & Feeling" & "Judging & Perceiving". The Myers-Briggs test divides people into 16 different personality types which are, ISTJ, ISTP, ESTP, ESTJ, ISFJ, ISFP, ESFP, ESFJ, INFJ, INFP, ENFP, ENFJ, INTJ, INTP, ENTP, and ENTJ. In some ways, this test tends to put people into psychological boxes which is not the idea at all. However what this test will give you is insight and awareness around why you do things in a certain way and how can you use that awareness when approaching the financial markets and trading.
Click on the button below now to find out your Trader Personality Type