Your Trader Personality Type

One's Trader Type is a set of character traits that do

not change much over time. Like DNA, character traits
influence how we live.... and how we trade. Your
Trader Type is also associated with a specific set of
strengths and weaknesses. You may already be aware
of these positive and negative factors in your trading,
but you may not have realized that they correspond to a
Type.

This means that there are thousands of traders out there

with the same or similar profile, facing the same issues
that you are. Additionally, your trading buddies and mentors are likely to be of a different
type. What works for them is probably not going to work for you. Once you realize this,
you can approach your own development as a trader with more clarity and focus.

AWARETM
My Trader Type model is based on five distinct personality types: Agrarian, Warrior,
Artist, Realist and Engineer. The acronym is AWARETM. Most traders express the
characteristics of just one type, but hybrids of two types are not uncommon. As traders
develop, however, some individuals begin to integrate more than two approaches,
resulting in what I call 'Super-Hybrid' combinations of 3 or more types.

Congratulations! Super-Hybrid test results tend to be associated with advanced traders

and your results place you in this category. Super-Hybrid traders tend to be the most
successful because they are the most adaptive. Of course, this process takes time. Like a
good wine, Super-Hybrid traders have matured 'organically' in order to achieve mastery
over the complex market environment.

Agrarian ('Farmer') + Artist + Engineer (A Super-Hybrid)

Based on your answers, your Trader Type is a Super-Hybrid of at least three of the five
standard types. Your most dominant types are: 'The Agrarian' (aka 'The Farmer'), The
Artist and The Engineer. Below you will find a separate discussion of each type. The
way you integrate the three dominant styles will be somewhat individual. That said, once
you are aware of the mix, you may recognize how they each express themselves in your
trading. You will trade the best when there is harmonious inner cooperation.
 Type 1: THE AGRARIAN (aka 'FARMER')
'The Agrarian Trader' aka 'The Farmer' has the following strengths and weaknesses,
summarized here and then discussed below.

STRENGTHS
• Careful
• Consistent
• Conservative
• Deliberate and methodical planner
• Largely unemotional
• Disciplined
• Honest and helpful

WEAKNESSES
• Oversimplifies trading
• Flustered by volatile or random markets
• Takes trading results personally
• Too nice

DISCUSSION

Agrarian Traders are laid-back individuals who take a careful, consistent and
conservative approach to life and trading. You are not attracted to drama or conflict.
Rather, you like things to be peaceful and predictable. Agrarians tend to speak and act in
a deliberate, measured manner no matter what is going on around them.

The term, however, might need some clarification. Remember those Hollywood Westerns
where mom and pop Farmer, (who might also have some sheep) were pitted against the
marauding nomadic cowboys or Indians? This theme generated endless dramatic interest
because the two cultures are polar opposites. Whereas horsemen are aggressive,
Agrarians have a generally cooperative, albeit vigilant attitude and circle the wagons
when challenged.

Unlike the opportunistic raiders, Agrarians are careful planners. For Agrarian Traders,
consistency is much more important than spontaneity or creativity. Agrarians take
calculated risks, but they don't change horses in mid-stream. Rather, Agrarian Traders
want a clear, reliable method that they can apply repeatedly to just one or two markets.
This might mean you are attracted to automated strategies.

Agrarian Traders don't chase momentum, but rather prefer to take advantage of the
repeating patterns and cycles in their chosen market. Agrarians also tend to take a longer-
term perspective than other types of traders, which means you are more suited for swing
trading than daytrading.

Agrarian-type traders are naturally attuned to market 'weather' and will tend to look at
market internals or other measures for a read on conditions. Agrarians will be reluctant to
make trading decisions without referencing the character of the environment and
attempting to harmonize with it. Along that line, Agrarians are not counter-trend traders;
you want to go with the flow.

PSYCHOLOGICAL CHALLENGES

Agrarian Traders like things to line up. The natural

randomness of the market can paralyze Agrarian
Traders, who try to find a rule that explains everything.
As they wait for a specific set of conditions to coincide,
they might find themselves missing out or over-
analyzing.

Agrarians are straightforward individuals who may

underestimate the difficulty of trading and may not be
prepared for its random acts of unkindness. Agrarians
believe hard work has just rewards. Because they value
fairness, Agrarian Traders risk taking the randomness
of the market personally when it causes them to lose
money. This can lead to feelings of rejection and depression.

Type 3: THE ARTIST

Based on your answers to the Trader Personality Type questions, your Trader Type is
'The Artist.' This type has the following strengths and weaknesses, summarized here and
then discussed below.

STRENGTHS
• Highly creative and
intuitive
• Ability to adapt to changing
conditions
• Synthetic thinkers
• Forward-looking
• Excellent at pattern
recognition
• Market psychologists

WEAKNESSES
 • Difficulty planning and following rules
• Overly engaged with the market
• Too emotional
• Low tolerance for stress and losses
• Poor sense of timing
• Fear of missing out
• Over-reliance on mind-reading (missing the obvious)

DISCUSSION

Artist Traders find markets fascinating because the

complex, ever-changing panoply stimulates them, both
intellectually and emotionally. Artist Traders are
excellent students of the market and work hard to
understand the intricacies of its behavior and motivation.
They are particularly skilled at identifying patterns. They
are also highly intuitive individuals, who often seem to be
able to sense what is going to happen next.

In contrast to the pragmatists, Artists are possibility people, which means they are never
satisfied. They constantly explore (and collect) new trading ideas, systems, methods
and/or indicators. Often, an Artist Trader will have a goal to create a hybrid system
consisting of elements gleaned from their explorations and experiments... a grand
synthesis. Indeed, in their unending quest for knowledge and mastery, Artists often feel
like they are "on the verge of greatness."

For Artists, however, trading rules are always provisional. It is less important for them to
follow their rules than to achieve a sense of attunement with the market in the here and
now. The market is always changing and Artist Traders want to go with the flow.

PSYCHOLOGICAL CHALLENGES

Artist Traders often know where the market is

headed, but it can be difficult for them to actually
capitalize on their foresight. Artist Traders have a
tendency to mind-read the market rather than trade what
they see. This can result in missing the obvious.

When they take action, it can be early or late because

their thinking process is largely non-linear. As a result,
Artist Traders tend to be driven by the fear of missing
out.

Artist Traders over-rely on creativity, which can lead

them to constantly change their trading system. Consequently, they will often find
themselves using a system they have not yet mastered. Opportunities, therefore, will slip
through their fingers.

In an effort to understand the market better, Artist Traders tend to get over-involved with
the micro-movements and nuances of price action. This can tire them out and stress them
out. Unfortunately, their stress tolerance is usually low and their emotionality is high.
That can be a dangerous combination.

Type 5: THE ENGINEER

Based on your answers to the Trader Personality Type questions, your Trader Type is
The Engineer. This type has the following strengths and weaknesses, summarized here
and then discussed below.

STRENGTHS
• Careful
• Consistent
• Conservative
• Deliberate and methodical planner
• Largely unemotional
• Disciplined

WEAKNESSES
• Over-reliance on the past
• Flustered by volatile or random
markets
• Paralysis of analysis
• Unrealistic expectations
• Fear of being wrong

DISCUSSION

Engineer Traders tend to be detail oriented and rarely

make mistakes. These individuals often have a
professional background in engineering, accounting,
programming or flying, all of which require a high
degree of accuracy. Pilots usually fit into this high-
precision category because in flying, mistakes can be
fatal.
Engineers are conservative and methodical when it comes to risk-taking, both in trading
and in life. They tend to drive the speed limit and fill up their gas tank well before the
warning light comes on. They are the one's with a flashlight and other emergency tools in
the trunk.

Engineer Traders rely on reason, not on gut feelings, to succeed, which is why they have
no interest in gambling. They only take calculated risks and they can give you the
numbers: risk/reward and other performance parameters.

When they buy a new device of some sort, they have thoroughly researched it and take
the time to read the directions.... before they put it together or turn it on. Engineer Traders
play by the rules and ask a lot of questions because they want/need to know the nature of
the game before they start.

Spreadsheets are their best friends. They carefully backtest their strategies and methods.
Although they are aware that past performance is not always indicative of future results,
Engineer Traders would never trade a method that did not have a verifiable track record.

In fact, Engineer Traders are proud of their rationality and secretly enjoy pointing out the
sloppy thinking of others. They are in no hurry to make a decision about anything
because they see not only both sides of the coin, but also the edge.

PSYCHOLOGICAL CHALLENGES

Engineer Traders love precision, which is rarely

possible in the highly random trading environment. They
may require so many factors to line up perfectly that a
paralysis of analysis ensues. Engineer Traders have faith
in backtested results, which may set them up for rude
awakenings.

When emotions get in the way of their trading, Engineer

Traders feel embarrassed. Engineer Traders tend to fear
being wrong or making a mistake. When they do make an
error, they tend to remember it for a long time.