Forex Blog

First-hand Forex trading experience and information about foreign exchange market that will be useful to traders

Archives

Forex Traders’ Crucial Traits — Poll

March 26, 2012 (Last updated on March 31, 2012) by

Every trader’s personality is different. There are no two identical Forex traders. Nonetheless, most of the traders share some common personal qualities that either help them become successful and earn money with the FX market consistently, or become losers who destroy their account balance and return only to lose again. What are those personal qualities? What psychological traits or combinations of them are vital for a financial trader? I’ve read several books, dozens of articles and hundreds of forum discussions on the psychological part of trading. The most important factors outlined by many authors were the following:

Cautiousness — trader’s capability of minimizing the risk exposure during high level of uncertainty.

Erudition — a general level of trader’s knowledge on factual subjects. It shows how learned the trader is.

Independence — the ability of a trader to act independently, without the market crowd’s influence.

Intelligence — a general level of trader’s capability to learn, analyze and make reasonable conclusions.

Patience — the ability of a trader to wait for strong signals — entry or exit. The ability of a trader to learn and test before acting.

Update (suggested in the comments): Self-awareness — the ability to see and admit one’s errors and negative traits.

Self-confidence — the ability of a trader to act in conditions with a very high level of external uncertainty.

Self-discipline — the ability of a trader to act or cease acting according to his plan even when some part of his mind tells him to do otherwise.

For me, the choice of the most important trait of all the listed above isn’t very obvious as they all seem quite important. But, looking deeper into them, self-discipline stands out as the really crucial trait for a trader — I can imagine a successful trader with other qualities at a low level, but self-discipline is something what is really keeping any trading plan from falling apart, in my opinion. And how about you?

What is the most important personal quality for a trader?

View Results

Loading ... Loading ...

If you want to share a detailed opinion or ask some questions about the importance of various personal qualities in Forex trading, please feel free to do so using the form below.

8 Responses to “Forex Traders’ Crucial Traits — Poll”

  1. Marius Mass

    Good post, I voted for Patience
    Cheers

    Reply

    admin Reply:

    Thanks!

    Reply

  2. peter

    Good post. I voted for self-discipline. However, I would also add self-awarenesss to your poll. Many traders fail because they do no tlearn from their mistakes. It requires humility to be self-aware of being impulsive, bored, too greedy or fearful, etc and note when this has a negative impact on our performance. We all have days when our emotions can get the better of us. Traders need self-awareness in order to note why and when this happens so they can avoid or minimize repeating their mistakes.

    Reply

    admin Reply:

    You are right – I completely forgot about it. Now it’s also added to the poll list. Thanks for suggestion!

    Reply

  3. johnel

    I guess patience is the most important thing. Patience includes discipline.
    You can not have Self-discipline without being patient.
    Moreover, patience is a State of mind. You must have patience until the conditions are met for the implementation of your plan and your plan includes trading as final action.

    Reply

    admin Reply:

    You can be patient and still succumb to emotions, even while demonstrating some patience. So those are quite different traits.

    Reply

    johnel Reply:

    Even when you have self-discipline, self-confidence, intelligence…name it, you can succumb to emotions. According to this syllogism the best of all is to improve your EA.
    My best regards.

    Reply

    admin Reply:

    Self-discipline helps against emotions. A fully self-disciplined trader is a robot, sort of…

    Reply

Leave a Reply

required
required (will not be published)
optional