Personalities & Traders

Believe it or not, your personality plays a role in how you trade. To finish this chapter, let us now take a look at what the different traders and investors are for each of the sixteen personality types.

Analysts (ENTP, INTP, ENTJ, INTJ).

Curiosity and logic distinguish you; you see the financial markets as a puzzle to be solved. You are rational, not emotional. This will mean that you will not fall in love with particular trades or investments, but rather, that you will always keep your distance, without letting yourself be negatively influenced.

You are disciplined and balanced. Because you are very practical when you trade, you constantly seek to improve and optimise your investments.

ENTP

Your brain is built for investing in the stock market as a trader. Not only are you alert and intelligent, you also have the ability to quickly solve new and challenging problems that come to your trading business. You know when to continue investing at a slow, methodical rate, but you also know that some situations call for quick changes to your portfolio.

When there is an opportunity, financial or otherwise, you will be the one acting and reaping the rewards, whilst others are still thinking about their options. Hone these instincts through practice.

As an ENTP trader personality, you will constantly be facing down your biggest foe, boredom. When you feel that life is becoming too routine, you tend to kick your current interests to the curb and start something new. This flavour-of-the-month mentality may work for some of your hobbies, but you need to nip it in the bud when it comes to personal finances.

One way to keep your financial life interesting is to set micro-goals for yourself. Instead of creating an exhaustive 10-year financial plan, break it up with goals for your savings or a plan for getting out of credit card debt.

Because you are inventive, theoretical and change-oriented, your money personality type is built for challenges, so, start investing in the market today. You should also set micro-goals to stay on track with your investment.

INTP

You enjoy thinking about the theoretical and abstract, and this is a great attribute to have if you are a good trader but not necessarily a personal finance whiz. You also tend to pursue lower-paying investments, with the average INTP only earning $36,000 a year. That is a tough break, but it is not a life sentence. There are still plenty of ways to help you get ahead in finance.

As a trader, you enjoy having money, but you find money management to be uninteresting and difficult. While you should not ignore your financial situation altogether, consider automating your bill payments, budget, savings and investments accounts.

Ramit Sethi, the author of “I Will Teach You To Be Rich,” specialises in a hands-off money management plan, which enables you to set up your trading finances with a few steps that you do not have to look into again. This gives you the freedom to think deep and meaningful thoughts without having to worry about whether or not you will have money in the bank tomorrow.

One of the biggest perks of being an INTP trader is that you are not easily affected by criticism or change. While some people will run from opportunities for these reasons, you will continue to pursue them. Use this to your advantage in your investing mastering tasks that others find too Difficult. This will likely result in gaining you additional income throughout your life.

Being a thinker, you are likely very complex, curious and objective in your investing Make sure to challenge yourself to take an active role in your finances. Stay on track by automating regular payments and challenge yourself with difficult financial goals.

ENTJ

Out of the personality types, ENTJs traders are known for making the second-largest household income, averaging $76,000 per year. You are a natural-born problem solver, picking out illogical or unproductive strategies and offering better alternatives. Because of this, your friends, family and peers may seek you out to get financial advice.

If they do not, you may feel the urge to give them advice anyway. Be careful when giving your opinion about other people’s finances, though, especially your parents, as it is often a touchy subject.

While people with other personality types often have a hard time sticking to a financial plan, you find it difficult to waver from it. Do not get so caught up with your budget and your financial goals that you forget about other humans. If it helps, create a place in your budget specifically designated for interacting with others.

As a planner, you are naturally great at saving money. You are likely systematic and critical in your thinking, so make sure to give yourself some breathing room and indulge every once in a while. You should also be wary of finances and stubbornness impacting your relationships with other traders. Practice patience to achieve long-term investing results.

INTJ

Your mind is wired for new ideas and long-term strategic planning, making you a financial force with which to be reckoned. You tend to see the world as a series of obstacles to jump over (and you are a master at this), so for you, when investing your finances, it is best to set clear goals.

Whether you want to retire early or set up a college fund for your children, make a strategy to get you where you want to be. You are driven by ambition and new ideas, so the sky is the limit when you set a goal to trade wisely. A well-crafted budget and an investment plan are powerful resources for someone with your planning skills.

Although you are skilled at analysing situations and predicting outcomes, do not think of yourself as infallible. You might consider having a certified public accountant (CPA) look at your plans. They will make sure your plans are as fool-proof as you think they are.

Your personality type as a trader is logical, independent and determined. If you fall into this category, channel your ambition into long-term goals. Also, strengthen your strategies by seeking a second opinion from time to time.

Diplomats (ENFP, INFP, ENFJ, INFJ).

Diplomats are idealists. You are more concerned with meaning than money for money's sake. You care about the impact the money you spend will have. You would feel uncomfortable investing in something that does not fit your values or conflicts with the causes you hold dear.

Your philosophy is to “set it and forget it,” which is an approach that the average investor should really take.

Value-based and socially responsible investments can arouse your interest when thinking about your financial future. What you do with your money is an extension of your identity, and your investment decisions should reflect your values.

ENFP

Not only are you enthusiastic and imaginative, but you have the uncanny ability to understand the causes and effects of your actions. This carries through into your trading and finances, causing you to think twice before going into credit card debt or getting a high-interest loan.

You also have a knack for reading people you are trading with, which helps you weigh your options and stay clear of bad financial deals or offers. For instance, just because the bank down the street offers an interest rate on a savings account, this does not mean it is the best option for you.

By weighing your options and doing some research, you will quickly discover that there are high-interest online savings accounts that offer more than 1% in interest.

ENFPs are also known for seeking the acceptance of their leaders and peers. You tend to want verbal affirmation for your achievements. When considering your finances as a trader, let someone into your inner circle and talk to them about your finances. That may seem taboo, but regularly talking with a close friend or family member about personal finances and investments can be a great way for you to jumpstart your goals. Confide in them when you fail, and brag to them when you succeed. Invite them to do the same.

This personality type is optimistic, imaginative and future-oriented. In order to make rational financial decisions as a trader, it is important to separate your emotions from financial decisions and set days of the month to review financial decisions on your investment.

INFP

You want a career that fulfils you, and lets you make a difference in the world. Unfortunately, the investments you are involved in do not always yield impressive paychecks. This being said, there are a handful of investments that will allow you to serve the greater good, whilst simultaneously padding your wallet.

An INFP trader’s real strength is in their curiosity and ability to perceive new ideas. Given the right planning, you could potentially pursue entrepreneurial endeavours. In order to do this, though, you will need to change your perception of failure. INFPs are known for being too hard on themselves when it comes to decision-making. The biggest enemy of your financial situation will inevitably be yourself.

The idea of gaining wealth may excite you at first, causing you to invest, open a savings account and start a budget all on the same day. But you could grow discouraged by your slow progress and pursue something else. Because of this tendency, it is wise for you to have a budget and an accountability partner to keep you on track.

You are compassionate, idealistic and inquisitive; the helper will spend all their money on helping others if they are not careful. If you fall into this category of trader, make sure to link financial goals as a trader to your personal values in order to get fulfilment out of trading. Focus on taking care of yourself first before you help others and also learn to take financial setbacks in stride.

ENFJ

They are highly attuned to the emotional, and physical needs of others, as ENJFs are known for being selfless leaders. Whether you are investing in a foreign country or managing a company of your own, you have the ability to succeed in every way, and finances are no exception.

You thrive feedback, both positive and negative, helps you thrive, so seek out finance experts. Whether this is your CPA or your sister-in-law, make it a point to find people willing to give honest criticism about your financial goals. Tell them about your strategy for investing in trade and carefully listen as they critique your plans. Take their advice and run with it.

In many cases, ENFJs are too idealistic, and this is especially true in trading. While you may have met someone who got a 12% ROI in the stock market, you will probably not be able to imitate such statistics regularly. Make sure you are setting realistic goals when investing.

You should also be wary when it comes to striking deals that involve money. ENFJs are quick to see potential in others, and this can cause them to be overly trustworthy. When dealing with partnerships, loans or financial deals, make sure you create a contract and have a lawyer read over the fine print.

Traders in your personality are cooperative, tactful and harmonising. As such, you should be wary of opportunities that seem too good to be true and avoid inaction by planning out future steps.

INFJ

INFJs tend to derive the most pleasure from pursuing relationships and ideas, rather than financial security or success in trading alone. In the hit book “Outliers,” author Malcolm Gladwell explains that humans need three things to be satisfied in their work: autonomy, complexity and a direct connection between effort and reward.

This is especially true for INFJs traders. When seeking an investment to trade in, look for one that will enable you to achieve these three things. Money will follow.

INFJs have a tendency to keep their personal success in trading very private. This can be problematic if you find yourself in a bad financial situation. For instance, if you are struggling with credit card debt, it is always beneficial for you to talk to your business partners or loved ones about your struggles. They can help you get back on track and keep you accountable. Closing yourself off from the rest of the world is not going to help anyone, so do not be afraid to seek out help.

Visionaries make up just 1% of the population! This highly successful trader personality type will benefit greatly from seeking advice from an advisor. You should also celebrate small victories, and prior to investing, you should make pros and cons lists in order to help you in your financial decision-making process.

Sentinels (ESFJ, ISFJ, ESTJ, ISTJ).

You are responsible and duty-oriented; long-term financial planning comes naturally to you. You like having financial security and investing responsibly. You are good at being organised, and you're happier when life runs smoothly. Sentinels are measured and careful investors, who can ride out short-term bumps in the road for the long-term payoff.

You hate losing money, and the idea of gambling with your financial future is far from your way of thinking. Your strength is patience. Having a risk-averse temperament, an unexpected change can make you anxious.

ESFJ

According to a study, traders with an ESFJ personality make the largest yearly income, bringing home, on average, $77,000. To put this into perspective, that is more than the average incomes of INTPs and INFPs trader’s personalities combined.

Between your warm-hearted nature and your ability to support and work with others, you are a born leader. If you have not already, you should ask your colleague about pursuing leadership opportunities in trading, as it will give you the opportunity to grow personally, as well as financially.

While you probably will not have any trouble creating a personal financial plan, you may have a difficult time tweaking it or making necessary changes. ESFJs traders are not known for their flexibility or improvisation, which could cause them to get stuck in a bad financial situation.

If, for instance, you have invested in real estate as a long-term investment, but you cannot find a tenant for years at a time, it may be best to either change how you are marketing the house or simply count your losses and sell the property. But whether it is out of loyalty or stubbornness (both of which are traits in ESFJs), you may feel inclined to stick with your original plan.

In some cases, this wait-out-the-storm mentality can be beneficial, but in other situations, it can just leave you wet, broke and miserable. Knowing the difference is key. One way to remedy this is to make contingency plans in case something goes belly-up. For example, give yourself a three-month period to find a new market opportunity, but if you cannot, set a new plan into place to sell the property.

Supporters are orderly, conscientious and empathetic. You have lots of financial and business-related success to look forward to in your future, so make sure to pursue leadership opportunities that come with a high-income tag. Set money aside for an emergency fund and do not overcommit by spreading yourself too thin.

ISFJ

You like the balance between your work, financial goals and loved ones. In order to keep everything organised (and you love being organised), you would benefit from creating and maintaining a strict budget. For an optimum trading organisation, leave your pen and paper behind and start an automatic budgeting system online.

A budget ensures that you know where your money is being spent, and saved. This takes the stress off of your shoulders, allowing you to spend more time focusing on what truly matters to you.

ISFJs traders are known for seeking harmony, which is great so long as you are not getting involved in problematic financial situations. For instance, just because you have always had a savings account at your hometown bank, this does not mean that it is the best place for you to store your money. Do your due diligence and shop around for high-interest savings accounts and low/no-cost stock trading options.

Do not be afraid of causing havoc, if it will enable you to improve your financial situation. Likewise, investing in your cousin’s latest business venture might be a poor financial decision for you in the long run. Make an extra effort to separate your relationship from your finances.

If you are a protector, then you should plan to set realistic financial goals to lessen the pressure on yourself. Offer your knowledge of finances to teach your friends. Make sure you embrace change. Do not forget that you are dependable, practical, and thorough. So, you need to follow these three key steps carefully when trading.

ESTJ

Unlike ENTP traders, you find greater fulfilment in routines and long-term plans (and you expect everyone else to be the same). If you have not already considered retirement, take a few minutes to calculate how much money you will need during your golden years. Now, that you have done that, make a practical plan for getting yourself there, including but not limited to a 401(k) and passive income opportunities.

You are a tinkerer, testing different options that can improve your financial situation, such as developing income on the side and investing in the stock market. You will likely enjoy optimising and organising your finances, as you find disorder to be unacceptable. This, matched with your impressive willpower, make you a potential master in trading.

In terms of goals, do not settle for being financially average. You have an exceptional gift for planning and investing wisely, meaning the sky is the limit for you and your goals. If you want to get out of debt quickly, save up for a new house or even retire in your 40s to start trading, you have the capacity to do so.

These aspirations, however, may require you to make changes in your life that your peers find unusual. While your friends or family may live paycheck to paycheck (and expect you to do the same), you know that this kind of lifestyle can be a death sentence for your long-term goals. ESTJ traders tend to care too much about their social standing, and this can get in the way of their financial needs.

This trading personality is assertive, fact-driven, and practical. ESTJs are likely to invest in stock options, doing their research ahead of time, therefore this personality should test out different strategies, in order to find a process that works best for their investments. If you are an ESTJ, you should plan a future that fits your needs, setting both realistic and aspirational goals to work towards.

ISTJ

You are a master of long-term finances. When others react impulsively to the ups and downs of the economy, you have the capacity to remain practical and continue investing and saving wisely. You have learned that the key to building wealth is self-discipline and long-term planning, so you contribute to your investment accounts each month, to keep yourself heading towards your goals.

You may, however, be inclined to turn down new financial opportunities for fear of hurting your plans. While you should not jump at every opportunity (as you well know) some risks can be very profitable. If you are in your 20s and 30s, go out on a limb and take some financial risks.

You do not have to put it all on the line, but set aside part of your income to try something new in trading, like investing in real estate, or starting a new business. You never know, it might pay off.

You are known for being analytical, decisive, and stable; the trader in this personality type should take the occasional risk outside to their comfort zone. You should also seek out advice from a trusted source such as a financial advisor. Do not let small downturns discourage you; you are in this for the long haul.

Explorers (ESFP, ISFP, ESTP, ISTP).

You seek adventure and excitement in all aspects of your life, and your investments are no different. If you belong to this group, you prefer to learn by doing, which means you could not force yourself to read a trading book, even if you really wanted to. But still, if an investment piques your interest, you are more than capable of becoming competent at it.

As an explorer, you are motivated by new opportunities. Your adaptability and predilection for “living in the moment” means that you can fight with markets when they fluctuate (thanks to your aggressive and riskier investment style).

However, your adaptability is both an advantage and a responsibility; you may be prone to distraction and may not have the self-discipline to stick to a trading plan if it starts to look boring. Do your things and go big, but always make (and follow) a trading plan.

ESFP

You are a lover of life, charity, people, and you like to treat yourself from time to time. The trader with an ESFP personality type is often nicknamed the “entertainer,” due to his or her desire to be in the spotlight while simultaneously making others feel accepted, loved and comfortable. Unfortunately, this can be expensive. Make sure your hospitable nature does not overwhelm your budget and offset your financial drive.

Since relationships are some of your primary drivers, pursue groups and challenges that encourage you to get your finances together.

At a glance, this may not be your ideal way to spend a Monday night, but if you go with a group of friends or a spouse, you will be more likely to learn more about trading and get the most out of it. Find ways to incorporate your love of people and your practical need for financial security.

If you are a socialite, then you know how easy it is to get caught in a spending frenzy. Your enthusiasm, hands-on personality and openness make it easy to attract friends and bills. Learn how to say “no” and use, for example, an app to set limits on entertaining expenses.

ISFP

Sometimes called the starving artist, ISFPs have a tendency to pursue creative and philanthropic outlets. While your goals as a trader are often benevolent, you tend to have trouble building wealth (at least in the tangible sense).

You are, however, incredibly charitable, known for giving your time and money to foundations and causes. While it should not be your primary goal, these charitable contributions can turn into impressive deductions during tax season.

If you plan on investing money in the stock market, you would benefit by either using a CPA and/or setting up an automatic payment with your 401(k). ISFPs traders are known for being be spontaneous, which causes them to jump into new and exciting opportunities at the drop of a hat.

These knee-jerk reactions can also be dangerous when you are investing money, so it may be a good decision to put your money where it is out of sight and out of mind.

Artists have a bad rep in the financial department. You are loyal, spontaneous and modest so make sure to set aside a portion of your paycheck to build up your savings for the long-term. Also trade in your passions to make saving feel rewarding.

ESTP

You have a soft spot for new (and expensive) toys. It is not uncommon for an ESTP trader to make impulsive purchases, so set up guards to keep yourself honest. You should set aside some money each month to use as your “fun money,” but when you hit your limit, you need to rein yourself in.

If you are struggling with overspending, make some changes, such as taking a hiatus from credit cards. When you pay with cash, it is tangible, and you can see it leaving your wallet. The same is not true when you pay using a credit card, which is probably why people spend more when they use their cards.

If you have not already, you should consider starting a business on the side. Due to ESTPs inclination for learning, you should take risks and talk to people, as you have a knack for entrepreneurship. If you decide to go this route, consider finding a partner or a team of people who can help keep you grounded. ESTP traders are known for going full-steam-ahead without asking for help.

Sometimes, especially when you are investing in a new business, you need people at your side. Use their talents to complement yours, which will help you get your side business off the ground. Creating this extra income, especially passive income, is a great way for you to achieve your financial goals.

Efficient, easy-going and active, the risk-taker may have a little too much fun on the stock market. Make sure to analyse big decisions before you make them and monitor your spending when you are out and about with friends.

ISTP

You have a knack for fixing problems, and this is especially true when it comes to trading. You are always looking for ways to quickly and efficiently pay down debt, whether that means refinancing your mortgage or student loans, or paying off high-interest debt before low-interest debt.

In most cases, your interest and passion for something grows the more you study it. You might benefit from reading personal trading books, which would surely spark your imagination. Money can be fascinating. However, if you do not pursue knowledge about your financial situation, you could become bored and even lose track of your money. This can be especially dangerous when it comes to saving for retirement or paying bills.

This money personality is known for being adaptable, observant and adventurous. If you are an experimenter, try sparking your inspiration and curiosity by reading trading books and blogs.

Your trading personality is more than just the amount of money you invested or traded in a stock market. Your investment and saving habits reveal a lot about who you are as a person.

Do you recognise yourself in any of the above descriptions? Always remember that personality can be modified by the events that happen in our lives. So, as a consequence, personality can also change the way we think about trading.

When I talk about a method or strategy “that best suits you,” what I specifically mean is: something that harmonises with your personality.

It is for this reason that I do not talk about position management in my books, but rather confine myself to a handful of examples because they are more “personal.” Everyone has to find a way that reflects their own personality, and which makes them feel comfortable. My system is perfect for me, but for others, it might be deleterious. The same might be the case for the way in which I explain some strategies.

It is essential that you know yourself well, because doing this will ensure you adapt your personality to your trading, making the most of your personal qualities and abilities. By doing this, you will limit the negative feelings outlined in this book, by doing what makes you feel good, rather than a strategy that is suitable for someone else, and which would only cause you stress and problems.