Different types of traders
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In the Forex market, there are different types of traders. I am not talking about different methods or strategies but about psychology, how they perceive trading, and their relationship with money. The trader's number one enemy is not the market, it is himself. A trader's success comes largely from his ability to channel his emotions and his ability to respect his own trading rules. Depending on the trader's profile, his chances of succeeding in trading are higher or lower, or even non-existent for some trader categories. Your trader profile is not necessarily linked to your qualities and defects in everyday life, what matters is your relationship to money, the way you perceive the financial markets. There are, then, large disparities between traders.
This is a trader who uses the financial markets like a casino. He is looking for the emotional buzz. He comes to the stock or Forex market in the hope of making money but also for fun. For him trading is a game like any other, it's like a scratch card, or playing roulette at the casino.
This type of trader knows that he can lose his money. He knows the risks, but it doesn't matter. Its only real purpose is a route to adrenaline. He doesn't control his destiny on the financial markets and he likes it. He sees trading as a game of luck. He has no regrets if he loses, he is just frustrated that he didn't win, that he didn't have any luck.
This type of trader is very common in financial markets. They are the ones who lose the most money. His trading is an addiction, just like a smoker with cigarettes. He wants to relive the emotions that trading gives him. He regularly tops up his trading account, attempting to hit the perfect financial level again between each deposit. It is a bit like an unemployed person who spends all their money on scratch cards.
This type of trader cannot earn money. If he ever manages to double his capital, he tries to double it again and again until he ends up losing everything. He doesn’t have any performance objectives in the financial markets. He just wants to feel the pleasure of winning. These traders are simply players.
Advice: Don't go to the financial markets!
This is a trader who sees trading as a way to become rich. He's not interested in winning a little, he wants to win a lot. He is often convinced that he’s going to succeed, that he is stronger than other traders. He has an oversized ego. He is not interested in trading any more than that, it is just a way to achieve his goals, to change his life.
This type of trader does not consider loss. When he makes a trade, the only possible way out is to win. Generally, he doesn’t place stop losses. He refuses to lose, he doesn't accept it. To achieve this, he uses a lot of leverage.
His desire to win pushes him to take more and more risks. If he manages to generate gains (on a stroke of luck most of the time), he is not satisfied with them. He always wants more, to make more money. Money is his god, his only purpose. Like the "Double or quits" trader, he does not have performance objectives but for different reasons.
This is the kind of trader who is proud to show that he has doubled his capital in a week, who comes to shout it out loud on the forums. Of course, a few days later, no more news.
If he loses his capital (which is what happens every time), it is a personal failure. It is difficult for him to accept it but he is stubborn. He's not going to question himself, he has too much self-esteem. He eventually deposits more money and repeats the same mistakes.
In the long run, this type of trader is able to change but must necessarily lose a lot of money before he can progress in his trading, to be able to listen to the advice of other more experienced traders. It's a sad truth.
Advice: Don't go to the financial markets!
This type of trader has academic logic. He knows that he must be trained in trading, that he must go through the demo account route, he knows the trading risks but he's thinking about making money. The time spent actively trading must bring him money, otherwise it is time wasted.
He therefore gives himself some time to train but as soon as he has a trading strategy in mind, he goes directly to real-account trading. He doesn't want to waste time testing his trading strategy. Time is money.
This type of trader is able to set trading rules, manage his risk, apply his trading strategy. The problem is that he's impatient. If his strategy does not quickly generate gains, he becomes frustrated. He is then unable to return to a demo account to complete his learning. He feels he has already wasted enough time as it is. He accepted that trading can generate losses for a while, but now he no longer tolerates it.
This type of trader often gives in to his emotions. The lure of gains pushes him to take additional risks to make up for a loss, to win a little more, faster. He has realistic performance objectives and must meet them. Winning a little is not enough for him, it frustrates him. He must earn money in line with his expectations.
Advice: Accept that trader training gives you the basics but it is experience that makes you good. Becoming a trader is not a sprint, it's a marathon!
This type of trader reads a lot of trader training courses, is willing to pay for trader training courses and spends a lot of time on a demo account to establish his trading strategy. His problem is that he is afraid of losing and therefore gets stuck as soon as the first losing trades on a real trading account start happening. He's almost frozen by the stakes.
He knows the value of money, he knows that you have to work hard to get there and he doesn't want to lose his capital. He is a cautious trader, too cautious. He is blocked by his emotions, he tries to control them but he can't.
This type of trader is paralysed by the fear of losing. Often, he can no longer even open a position. If he makes money, he becomes frozen by the fear of losing it. If he loses money, it is the fear of losing more that blocks him.
This behaviour often reflects a lack of confidence in one's trading strategy but also in oneself.
Advice: You must accept losing in order to win in the financial markets. Trading involves risks but you can control it with money management.
This type of trader starts trading out of passion. He has always been interested in the financial markets. He starts trading to satisfy his thirst for knowledge, his desire to learn. He tries to understand the mechanisms of financial markets as a whole. Trading is just a response to the need to be as close as possible to the markets, to be up to date.
This type of trader likes technical analysis and is also interested in fundamental analysis. His curiosity has no limits. He therefore spends a lot of time training, testing trading strategies on a demo account. He is in no hurry to move to real trading. He knows that he still has a lot to learn, that you need to gain experience to succeed in trading.
Often, this type of trader is a bit of an all-rounder. He tries a lot of trading strategies, a lot of indicators. His endless curiosity then turns into a defect, he gets lost in all this knowledge. He no longer knows what to use in his trading.
This type of trader has realistic performance objectives. He does not think in terms of money but in terms of percentages. If he makes money, so much the better, if he loses money, it doesn't matter. But he knows the value of money and he manages his risk well. He does not have the lure of profit and therefore he is able to control his emotions better.
Advice: Don't change anything! You're on the right track to make money!
The "Double or quits" trader
This is a trader who uses the financial markets like a casino. He is looking for the emotional buzz. He comes to the stock or Forex market in the hope of making money but also for fun. For him trading is a game like any other, it's like a scratch card, or playing roulette at the casino.
This type of trader knows that he can lose his money. He knows the risks, but it doesn't matter. Its only real purpose is a route to adrenaline. He doesn't control his destiny on the financial markets and he likes it. He sees trading as a game of luck. He has no regrets if he loses, he is just frustrated that he didn't win, that he didn't have any luck.
This type of trader is very common in financial markets. They are the ones who lose the most money. His trading is an addiction, just like a smoker with cigarettes. He wants to relive the emotions that trading gives him. He regularly tops up his trading account, attempting to hit the perfect financial level again between each deposit. It is a bit like an unemployed person who spends all their money on scratch cards.
This type of trader cannot earn money. If he ever manages to double his capital, he tries to double it again and again until he ends up losing everything. He doesn’t have any performance objectives in the financial markets. He just wants to feel the pleasure of winning. These traders are simply players.
Advice: Don't go to the financial markets!
The "I want to make a lot of money" trader
This is a trader who sees trading as a way to become rich. He's not interested in winning a little, he wants to win a lot. He is often convinced that he’s going to succeed, that he is stronger than other traders. He has an oversized ego. He is not interested in trading any more than that, it is just a way to achieve his goals, to change his life.
This type of trader does not consider loss. When he makes a trade, the only possible way out is to win. Generally, he doesn’t place stop losses. He refuses to lose, he doesn't accept it. To achieve this, he uses a lot of leverage.
His desire to win pushes him to take more and more risks. If he manages to generate gains (on a stroke of luck most of the time), he is not satisfied with them. He always wants more, to make more money. Money is his god, his only purpose. Like the "Double or quits" trader, he does not have performance objectives but for different reasons.
This is the kind of trader who is proud to show that he has doubled his capital in a week, who comes to shout it out loud on the forums. Of course, a few days later, no more news.
If he loses his capital (which is what happens every time), it is a personal failure. It is difficult for him to accept it but he is stubborn. He's not going to question himself, he has too much self-esteem. He eventually deposits more money and repeats the same mistakes.
In the long run, this type of trader is able to change but must necessarily lose a lot of money before he can progress in his trading, to be able to listen to the advice of other more experienced traders. It's a sad truth.
Advice: Don't go to the financial markets!
The "I need results" trader
This type of trader has academic logic. He knows that he must be trained in trading, that he must go through the demo account route, he knows the trading risks but he's thinking about making money. The time spent actively trading must bring him money, otherwise it is time wasted.
He therefore gives himself some time to train but as soon as he has a trading strategy in mind, he goes directly to real-account trading. He doesn't want to waste time testing his trading strategy. Time is money.
This type of trader is able to set trading rules, manage his risk, apply his trading strategy. The problem is that he's impatient. If his strategy does not quickly generate gains, he becomes frustrated. He is then unable to return to a demo account to complete his learning. He feels he has already wasted enough time as it is. He accepted that trading can generate losses for a while, but now he no longer tolerates it.
This type of trader often gives in to his emotions. The lure of gains pushes him to take additional risks to make up for a loss, to win a little more, faster. He has realistic performance objectives and must meet them. Winning a little is not enough for him, it frustrates him. He must earn money in line with his expectations.
Advice: Accept that trader training gives you the basics but it is experience that makes you good. Becoming a trader is not a sprint, it's a marathon!
The "I'm afraid of losing" trader
This type of trader reads a lot of trader training courses, is willing to pay for trader training courses and spends a lot of time on a demo account to establish his trading strategy. His problem is that he is afraid of losing and therefore gets stuck as soon as the first losing trades on a real trading account start happening. He's almost frozen by the stakes.
He knows the value of money, he knows that you have to work hard to get there and he doesn't want to lose his capital. He is a cautious trader, too cautious. He is blocked by his emotions, he tries to control them but he can't.
This type of trader is paralysed by the fear of losing. Often, he can no longer even open a position. If he makes money, he becomes frozen by the fear of losing it. If he loses money, it is the fear of losing more that blocks him.
This behaviour often reflects a lack of confidence in one's trading strategy but also in oneself.
Advice: You must accept losing in order to win in the financial markets. Trading involves risks but you can control it with money management.
The "I'm not here to make money” trader
This type of trader starts trading out of passion. He has always been interested in the financial markets. He starts trading to satisfy his thirst for knowledge, his desire to learn. He tries to understand the mechanisms of financial markets as a whole. Trading is just a response to the need to be as close as possible to the markets, to be up to date.
This type of trader likes technical analysis and is also interested in fundamental analysis. His curiosity has no limits. He therefore spends a lot of time training, testing trading strategies on a demo account. He is in no hurry to move to real trading. He knows that he still has a lot to learn, that you need to gain experience to succeed in trading.
Often, this type of trader is a bit of an all-rounder. He tries a lot of trading strategies, a lot of indicators. His endless curiosity then turns into a defect, he gets lost in all this knowledge. He no longer knows what to use in his trading.
This type of trader has realistic performance objectives. He does not think in terms of money but in terms of percentages. If he makes money, so much the better, if he loses money, it doesn't matter. But he knows the value of money and he manages his risk well. He does not have the lure of profit and therefore he is able to control his emotions better.
Advice: Don't change anything! You're on the right track to make money!
