In the markets there are many different types of traders and many motivations that drive them. Everyone has heard of different types of traders based on their trading method: Swing Traders, Day Traders, Momentum Traders, etc. But what about different types of traders based on their psychology, their very purpose? Some trade for fun and excitement, others trade purely for ego. Other love the game and still others are in it only to make money. In the greatest game on earth it is surprising that many traders have different motivations, in reality the only correct motivation is to make money, that should be the real goal of any trader. Here are a list of ten types of traders I have observed on social media. We have all likely been more than one of these types at some time or another while trading. But we need to focus like a laser on the only real reason we should be trading: to make money and once we have made it, to keep it.
- Greedy Traders: They trade too big and risk too much because their only goal is the easy money.
- New Traders: They have no idea how the markets work so their only goal is knowledge.
- Arrogant Traders: Their only goal is to prove they are right and satisfy their fragile egos.
- Trend Traders: Their only goal is to ride a trend and make money.
- Scared Traders: Their only goal is to not lose their capital.
- Perma-Bull Traders: Their only goal is to go long stocks.
- Perma-Bear Traders: Their only goal is to short stocks.
- Prophet Traders: Their only goal is to rightly predict market movement then let everyone know they did.
- Paper Traders: They love the market and study more than anyone but never quite make the plunge into real trading.
- Rich Traders: Their only goal is to consistently make money and grow their capital over the long term.
Which of these are you?