A Needle Through Your Psyche
I saw it with my own eyes. A group of men-they looked like typical peasants from the countryside- parade through the open marketplace. What they were wearing shocked everybody. Or, they were high on something. This group of Peruvians-ranging from age 12 to about 70 years old all had large silver awls protruding through their tongues. I mean these needles were like 8 inches long and at least one quarter inch in diameter. When I saw them walking and trying to talk with no apparent pain, I was astonished. I stopped several of the men just to make sure it wasn’t some sort of trick. It wasn’t. They had indeed shoved these giant needles through their tongues. It made me flinch jus to think of it. But they had overcome any physical pain. Maybe I was so impressed because I am such a wimp when it comes to pain. Not physical pain so much as mental-like when I lose money when making a bad stock or stock option trade.
The unusual scene I saw in Huamachuco, Peru made me think that I needed to learn how to stick a needle through my trading psyche. When I got back home, I did a little research and the results have helped me a lot in my attempts to be become a better trader. You see, I’ve been trading long enough to understand that real success in stock or stock option trading is learning how to handle the pain of losing.
Psychologists have taken a recent interest in what makes a successful trader.
The following was taken from one of the latest studies done by the University of Minnesota concerning certain personality traits that seem to characterize successful traders.
1) Many successful traders show a certain amount of open mindedness. What this means is that they are open to new ideas and don’t close their minds off to possibilities if they can be shown to be beneficial. They may have a system that works for them but they are open to new ideas and will experiment if an idea sounds promising.
2) Conscientiousness is a quality most traders possess. They take the time to study their markets and will not trade if not adequately prepared. Moreover, when a trader establishes a system, they will follow it to the letter. Conscientious traders trade on a regular schedule and seldom vary their routine-both in trading and in life.
Conscientious traders like their trading logs to be a work of art and pride themselves in record keeping.
3) Personality types can be separated into introverts, extroverts and ambiverts. As trading is usually a solitary activity, one would think that introverted people would do best but that is not the case. Many traders come from a collaborative back-ground and like to link with other traders and to form networks of association and cooperation for the purposes of exchange of ideas and information. Even introverts are teaming up with coaches realizing that isolation is a choice and not a circumstance.
4) Helpfulness is a trait seen in most successful traders. They don’t mind sharing and helping others improve. They seem to sense that the odds are against them and survivors like to support one and another. Many successful traders turn to a teaching or coaching role to not only leverage their expertise but also to help others attain success. They know that trading is not for everyone and understand that a slew of successful traders are not going to be the result of their teachings. However, they do understand that for the proper students, they can make a very real difference.
5) Neurotic tendencies might be acceptable in some professions (linebackers and postal workers) but not in trading. Keeping a positive and winning outlook is a key quality for winners in any field-particularly in trading. But this doesn’t mean people with certain tendencies should be excluded. It can mean that by wanting to become a successful trader, the motivation will help to develop the techniques to over-come tendencies. Personality characteristics are not set in concrete. Moreover, over-coming shortcomings is what usually marks a winner.
Once I accepted that trading is as much a psychological challenge as it is intellectual, I have undertaken a study of myself and where I can improve to help forge a more successful trader. “Oh, how new age”, you might respond, but I spend most of my working time and a lot of my net worth trading and so why shouldn’t I look at all ways to improve? How about you?
To find out much more about the world of stock options, contact Options University at www.optionsuniversity.com
Join us next week for the 2nd Annual Investor’s Superconference, in Orlando, FL presented by Options University, June 5th to the 8th, 2008.
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