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The Personality Principle

trading personalityI've always been a big fan of MIND over MATTER.

Quite often a traders biggest failing does not come from the strategy.

It comes from a lack of discipline when following the strategy.

If you want to trade like a professional, psychology will make or break you.

If you allow your emotions to make your decisions for you, then your strategy is 100% useless.

It's therefore important that your trading system fits your personality - an often overlooked fact.

As an example, my own personality is one that likes an element of control. Yet I also like a rule-based structure that tells me when I'm right or wrong without the guess work.

This is why over the years Elliott Wave Analysis has become a perfect fit for my personality type. And yes, it did take time for me to discover this.

If you can find the personality vs strategy sweet spot, then you will be well on your way to becoming more successful.

Also, never worry about what someone else is doing. It may not be the right fit for you.

You know the rules to become a successful trader; cutting losses, using stops, reducing noise, position sizing, risk management and following price action.

Following these simple steps will be more difficult if your strategy is a poor fit with your personality type.

If your personality type is impulsive, impatient or prone to risk taking, then a more systemised 'set and forget' approach may suit you.

A personality type that is more controlled and disciplined may be more comfortable with a rule-based or discretionary model.

There are of course many other reasons why traders lean towards one strategy over another. Yet all we are saying is to consider 'personality to strategy fit' when it comes to your trading.

Get it right, and it may strengthen your compliance to the rules you have worked so hard to create in the first place. Plus you may add some extra dollars to your trading account!

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