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Personal Traits in Trading

4 min read

Personality can have a major impact on how traders behave and make decisions. It is therefore worth taking a close look at those personal characteristics.

In the following text, the various personality traits are discussed and explained. We also explain how to avoid the negative effects of these properties and thus achieve the greatest possible trading success.

What are personal characteristics and what role do they play in trading decisions?

Personal characteristics are the qualities that define a trader. In order to determine these individual characteristics, you have to divide them into different groups.

These include patience, discipline or – very important in the trading area – rationality. Confidence and determination also count.

Personality traits and their impact on trading behavior

In the next few sections, we’ll look at some of the properties and explain them in a little more detail.

In addition, we also show what characterizes which properties and what influence they can have.

Rationality in trading

When trading, staying rational is especially important. Rationality does not mean always making the highest possible profit.

Rather, it is important to accept smaller profits or even losses. Anyone who acts rationally knows that losses are also part of a trader’s everyday life.

Confidence in trading

A healthy self-confidence is one of the basic qualities of a trader. There are various reasons for this. Those who are confident are better able to tick off less successful trades and focus on new goals.

Strong self-confidence also ensures that one can accept losses and learn from them. Important: Self-confidence is good, but overconfidence is not!

Those who overvalue themselves tend to overshoot their limits and perhaps suffer more losses as a result.

Determination in trading

Determination also plays an important role in trading. Only with the right degree of decisiveness can you quickly assess situations and act accordingly.

In addition, determined traders can assess when is the best time to enter the trade – and when not. However, determination is not a license to act rashly.

Before entering into a position, all necessary information should be obtained and evaluated. Sound risk management is also essential.

Patience in trading

“Patience is a virtue,” as the old saying goes. The message of this proverb also applies to trading.

If you want to trade, you also have to have patience. Because sometimes it is better to wait a while before making a purchase/sale in order to make a profit.

So it takes some patience for the right developments to take place on the market. Those who do not have the property run the risk of incurring long-term losses or missing out on gains.

Patience also builds a bridge to rationality, which we have already described above. Those who take their time usually act more rationally, which in turn has a positive effect on trading.

Discipline in trading

It goes without saying that a trader must have the necessary discipline.

Those who plan their trades know when it is the right time to enter or exit in order to make a profit or avoid losses.

If this discipline is not present, it can happen that the trader makes ill-considered decisions. The basic requirement is a suitable timetable that the trader sticks to and only deviates from it in exceptional situations.

Avoid negative effects of personal characteristics when trading

If you want to trade successfully, you have to learn not to let personal characteristics become a stumbling block. Rationality is very important here, as this is the only way to achieve solid profits in the long term.

Discipline and patience are no less important in this context. A disciplined investor has a clear trading strategy and sticks to it. Of course, it can happen that he has to veer off every now and then and react to movements in the market – but this is not the norm.

At the same time, patience and determination are also important factors when it comes to trading. These two characteristics initially seem contradictory, but they are by no means mutually exclusive when it comes to making informed decisions.

In fact, experienced traders know when to be patient and when to act decisively. A serious and well-founded analysis is the cornerstone. Also important: The traders must not be guided by their emotions – neither in a positive nor in a negative sense.


Personal characteristics can affect trading both positively and negatively. A prerequisite for a successful result – ideally with profits – is a balance between characteristics such as discipline, determination, patience, rationality and self-confidence.

Anyone who is able to keep this balance will be able to make long-term positive deals. In any case, it is important to have a good trading strategy and the necessary background knowledge as to when you have to display which characteristics.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.