Trading Styles, Personality Traits, and Financial Status (2)
How Your Personality Trait Affects Your Trading Style
Whether you like it or not, your trading depends on your personality traits. Why? Your personality type will determine your patient level, how long you will hold trades, and how often you will trade over time.
I want to talk about four (4) trading legends (Giants) and their trading styles.
Trading Giants and Their Styles of Trading
There are many successful traders in the financial markets, but I want to discuss the ones who stand out among the four styles of trading I have discussed: Scaling, Day Trading, Swing Trading, and Position Trading.
The traders I will be talking about are:
- Stephen Kalayjian
- Michael J Huddleston
- Fx. Professor
- Tay Sweat
Stephen Kalayjian
Stephen Is a famous technical analyst, and scalper with over 40 years of experience trading stocks, options, futures, and currencies.
He is notoriously known to have a haven of trading screens in front of him when trading and he is usually standing in front of these screens, watching market movements like a hawk.
Since he is a scalper, he can end up taking about 30 to 40 trades in a single day, just securing 3 to 5 handles one trade at a time.
Just like most technical traders, Stephen does not like trading economic news, he even says in all of his trading career, he has never traded in economic news, now he is a trader who doesn’t like fundamentals.
He also has a proprietary algorithm that he designed to give trade directions and decisions, this algorithm is also a source of data for the firm Stephen runs, which tells them what is most probable based on past performance.
He Is an analyst, trader, and researcher, and he deserves a spot in my trading giants, representing the scalpers who focus on very short movements spanning 1min to 30mins in the market.
Michael J Huddleston
Also known as The Inner Circle Trader (ICT), the ghost in the machine himself, the author and creator of the smart money concept (SMC) which has now been used by millions of traders worldwide.
Michael started his trading career in the 90s as a twenty-something-year-old kid, and through trial and error and also an unmatched obsession for his craft, he was able to create his concept from being contrarian to classical concepts.
Michael is popularly known for his use of the daily bias, pin-pointing the levels at which the daily candles will touch and reach for the entirety of the trading day, making him a Day Trader.
Generally, Michael starts his analysis on the daily chart, to have a view on order flow, then walks down to the 4hr chart for some levels he would like to be trading off of, and takes his entry on the 15mins, 5mins or 1mins chart, targeting most of the range that daily candle makes.
Around 1 to 3 trades are taken typically by ICT, holding trades for 1 hour to almost a whole day on average, and making anywhere from 25 to 100 points per trade, no doubt he is a day trader and deserves a spot in our list of trading giants.
Fx Professor
I am bringing this one home, as Fx Professor who goes by the name Hazeez Olanrewaju, is a Nigerian and he will be repping the swing trading community.
Fx prof. gained popularity about 5 years ago due to his unique trading methodology and also his philanthropic nature, he trades numerous forex pairs, which is how his name was coined.
Unlike the other two trading giants I have listed above, Mr. Hazeez tends to hold his for a couple of days to weeks in a lot of cases, he is a very vocal person in the forex space, as he never shies to share his trade updates before and after, allowing students and fans benefit from his vast trading knowledge.
Fx Professor, typically takes his trades from the hourly timeframe, holding for enormous reward-risk ratios spanning from 4:1 and 20:1, he is truly a giant in this space.
Tay Sweat
The last but not the least is Tay-Sweat. A social media sensation who is popularly known for his community “Secure the Bag”, where he teaches aspiring traders, his famous position-holding technique which he uses to extract profits from the market like a rock star.
Tay-sweat is a position trader and holds trades anywhere from weeks to months, sometimes as long as 6 to 9 months, almost like an investment strategy approach to trading.
He is mostly popular for trading big-cap stocks, buying calls and putting options on the underlying asset of those stocks, and securing ginormous profits from each trade.
Tay-sweat is a symbol of professionalism and patience as some trades he takes require a lot of time before they play out, and that is why he secures this spot in our trading giant list, repping the position of traders.
All the trading giants that have been mentioned can be found on several social media outlets, as I employ my readers to do their own research in following them and mirroring their approach, at least pick a giant that most resonates with you, and aspire to be like him.
Suggested Trading Style for Your Personality Type
Earlier in this article, I talked about the different personality types. Now, I want to link these personality types to the trading approach a trader should embrace.
Impatient, Competitive, Work-obsessed, Achievement-Oriented, Aggressive:
Individuals with this sort of personality ought to consider scalp trading, why?
Let’s look at the facts
Scalpers tend to be very aggressive when taking trades as they want minimal participation with high risk to be able to compensate for their very high frequency in and out approach to the market.
This sort of style tends to breed obsession with every tick on the price chart, as a scalper can often take over 10 trades in a single day, they are most likely to sit in front of their chart a lot, managing the trades as they come.
So, if you have this personality, then scalping will be a proper fit for you and you will most likely find success going in and out of the market.
Highly conscientious, perfectionist, Creative:
Individuals with this sort of personality ought to consider day trading, as day trading mostly relies on bias formation and directional correctness.
Since they are a perfectionist who wants to get things right, they will gravitate towards predicting how the day should close, and this endeavor benefits their psychology wonderfully, they always want to do their work well, so you know these individuals will thoroughly analyze the chart, not missing any details.
So, if you believe you fall into this personality, then day trading is calling you, as you will most likely find success in this endeavor.
Low-stress, Even-tempered, Flexible, Adaptable to Change, Patient:
Individuals that possess this personality ought to consider Swing Trading and or Position Trading.
Yes, you read that right, swing and position trading are both long-term approaches to trading and the individuals who possess the above personality will thrive in such an environment, when using these two styles of trading, your trades are expected to be held for a long-time duration, and only the patient and even-tempered can stand this test of time.
If you belong in this category, then swing or position trading calls out to you, and you should answer.
That concludes part 2 of this article: Trading styles, personality traits, and financial status.
To recap: I started with the 4 styles of trading and the trading industry giants that use those trading styles.
Then I finished off with the trading style you should consider based on your personality types.
Next time I will be talking about:
How Your Finances Affect Your Trading
Till then, Be Safe!!
