Are you an introvert or an extrovert and does it affect your trading?
I recently finished reading Susan Cain's Quiet: The Power of Introverts in a World That Canít Stop Talking. In one of the chapters, she touches upon trading by introducing a trader/psychologist who counsels other traders and investors. According to the psychologist's findings, extroverts would seem to be more sensitive to rewards, which leads them to get too excited by the prospects of winning so that they take outsized risks and ignore obvious warning signals (holding on to losers and all that). Introverts, in turn, would be more successful at regulating their excitement and desire for reward, and more likely to pay attention to what is actually happening in the market.
So my question is, where would you place yourself on the introversion-extroversionscale and how is it reflected in your trading or in your choice to become a trader? Does the loneliness bother you, do you feel you need to restrain your thirst for reward or do you think you can objectively assess whatever the market throws at you? Do you think your personal traits matter at all when it comes to trading?
I for one consider myself to be highly introverted. I'm drawn to trading precisely because of its "loneliness" (no need to constantly interact with bosses, clients or coworkers) and because of it being largely a mind game - you make you decisions based on probabilities of what will happen next, which in turn are based on your view of what's happening in the market right now, all the while keeping all your emotions in check.
How about you?
The following 5 users say Thank You to algoth for this post:
I'm Ambiverted. Love the solitary time with my screens and the markets, but i wouldn't mind a trading archade or Prop shop environment either. My previous life involved working closely with teams so i'm all good with that. My hobbies are reading, fishing and goldf though...so yeah quite introverted...
Last edited by xiaosi; August 6th, 2013 at 07:41 AM.
I read Quiet six months ago and can't recommend it enough. It felt as though I was reading a book written specific for me. I made my wife read it who has subsequently given it to some of her colleagues to read. If you're an introvert, you have to read this book!
What I enjoyed most about the book is that it made me realize that it is ok to be an introvert. All my life I had this nagging feeling that I needed to be outspoken and enjoy being around people all the time or there was something wrong with me. Society of today further potentiate's this because extroverts are seen as being more confident. This however isn't always the case. Since reading that book I have embraced who I am and have stopped trying to portray an image of myself that just isn't real. I am leaps and bounds happier in life.
I would also recommend the book to extroverts because we all need to realize that every type of personality has it's place. Remove either introverts or extroverts and the world will not have progressed as far as it has.
So with that said, in my mind introverts have an advantage when it comes to being a retail trader (note: not a prop trader, floor trader etc). Anyone who has traded full time at home for more than a few weeks knows how incredibly solitary it is. It's not just about sitting around at home by yourself. You need to be happy researching trading, reading about trading, waiting for trades,...all by yourself non stop every day. Personally I can't think of anything better.
Extroverts on the other hand I would imagine may be more prone to distraction as they require more external stimulation. Not being an extrovert myself, I can only guess at this.
ps. I believe Big Mike is on holiday so perhaps @sam028 will see this thread to move it to the Psychology section
You donít trade the markets; you only trade your beliefs about the markets.
- Van K Tharp
The following 7 users say Thank You to DarkPoolTrading for this post:
Being in the IT business for almost 30 years now and having personal responsibility for about 30 people in the IT department and customer services for about 10 years, I'm really fed up with team-, project planning and administrative meetings by now...
So I'd really enjoy the solitude and privacy of the life of a 'Private Equity / Fund Manager' if I'd get the opportunity to live that kind of life.