A Valuable Lesson In Knowing Your Own Personality Type For Investing
I recently shared my Myers-Briggs personality test publicly, and I did this for a couple of reasons.
For one, I enjoy sharing life experiences and who I am with the investors I work with. I believe in being open and honest with people and that I can learn something from everyone. Building a bond and trust with those who have similar passions and desires just feels good all around.
My goal is to help as many individuals as possible who believe what I believe and want to reach financial independence with new sources of income and grow their wealth with less effort and risk.
I grew up going to Zig Ziglar events. I was up on stage with him when I was only 12 years old, and Zig’s simple philosophy, which I believe in, is:
“You can have everything in life you want if you will just help enough other people get what they want.”
And two, if you understand how people’s brains work and how they think and react, including your own personality, you have a huge edge when it comes to trading and investing, which is what I will show you in this article.
Have you ever taken the Myers-Briggs personality test?
Well, I think you should know your personality type. But before you do the test to figure out “thyself,” finish reading what I must share here as it ties directly into your investing success.
There are 16 personality types, and the ones with the highest distribution are:
A common thread among these top personality types is the “S,” which stands for Sensing vs. “N,” for Intuition.
When it comes to trading and investing, Earl Nightingale’s quote could not be more accurate:
“If you don’t have a good model for success, just look at what everybody else is doing and do the opposite.”
As we know, the majority of traders lose money. A study showed after tracking 10,000 trading accounts for a year that more than half of the accounts LOST money during a one-year bull market rally. I believe emotions are the culprit.
What is the difference between Sensing and Intuition?
Sensing focuses on what you can detect with your five senses.
Intuition focuses on the impressions and patterns gathered from information. (data, technical analysis, chart patterns, statistics, logic, etc.)
Statistics show that 73.3% of individuals are “Sensing,” and if you know anything about the financial markets and how they move, it’s all based on people’s emotional reactions. News and opinions get into investors’ minds and trigger emotional trading and investing actions.
Why do people trade on emotions and get sucked into news and opinions? Because stories sell ideas and, if told well, can trigger the senses in our brain to see, feel, smell, and even taste the things being explained in a detailed story/news clip. The “sensing” personalities tend to follow stories that should be ignored, which I consider news to be useless noise.
Now, let’s take things another step further. The second most common personality trait is “Feeling” at 59.8%, which falls under the pair Thinking or Feeling category and also plays a role in our success as investors.
What is the difference between Thinking and Feeling?
This pair describes how you make decisions.
Thinking focuses on objective principles and impersonal facts.
Feeling focuses on personal concerns and the people involved.
If you have an “F” in your personality type, you must be aware that you will likely be more emotional as an investor, which can also lead to poor timing for your investment decisions.
Warning: If you have an “S” and “F” in your results, I believe it is vital that you embrace knowing who you are and take action to create a plan, steps, and rules to follow when trading and investing. It’s much easier for you to get sucked into news, opinions, stories, hype, and have constant FOMO because it is just how your brain works.
If you know your results already and have either or both traits, don’t panic!
Being a Sensing and/or Feeling person are wonderful traits, heck I wish I had more of them because I’m the polar opposite. I’m more like the actor Data on Star Trek. Also, I should be clear that none of this has to do with your IQ or experience. This personality test tells us how our brains are equipped to handle long-term thinking and/or seeing the big picture.
Now, I bet you are excited or maybe even nervous to know what your personality type is… But hold on for just a few more minutes!
Let me share a little about how you can benefit from my personality to make more money.
I am one of the rarest personality types, the INTJ. Also known as “The Scientist” or “The Architect.” I’m the opposite of a touchy-feely person. With that said, my personality is highly romantic, but we won’t go there…
What I am trying to say here is that we could be a match made in heaven.
Why? Because I ignore all the noise, stories, lies, and BS the market dishes out on a daily basis. I process the data and find logical, high-quality trade and investment opportunities that put the odds in favor of reliably making money trading stocks, bonds, commodities, and currencies.
In general, successful people are future-oriented and create goals and visions of where they WILL be someday. They think outside the box and dance to the beat of their drum. These individuals are driven and follow their natural skills and passions, which for me, happen to be stock market analysis and investing.
I deal with a lot of emotional people in my line of work. The good, the bad, and the ugly, but I understand what most are going through. Making or losing money and listening to strong news stories spark emotions, and they always will, it comes with the territory.
Based on helping individual traders and investors since 1997, I have a pretty good feel from talking with them or reading their emails if they are an “S,” “F,” or possibly both. People who tend to cancel their trade alert subscription with me (rare, but it happens) probably have one of those two characteristics.
Why do they cancel? Generally, they struggle to think for themselves to find and manage trades and their emotions.
They don’t see the boring logic behind my research, they lack the patience to wait for lower-risk opportunities, and they make rash/emotional decisions instead of examining how those decisions will affect them in the long run. Things like trading around news/hype, always wanting to buy just one stock or sector, or holding on to losing trades because they can’t man-up, take a loss, and move on to better and brighter things.
For example, a classic Sensing/Feeling newsletter cancellation email reads something like:
Thanks for all the education you have provided; it has been really useful. However, I need to cancel my subscription.
It’s not your trades. It’s just I ended up being the bag holder on a number of MY positions. Now my strategy is just to wait for a few years. It is not worth closing the trades at these prices, plus I believe in most of my positions ;)”
“Chris, I love your newsletter and have learned a lot. However, there are not enough trades, and I feel that we should be making lots of money from these big daily price swings in the market. I’m worried about what the Fed will do, and with the war and other scary news, I don’t know what to do, but I don’t have time to wait for your slower trade signals. So please cancel my subscription.”
It’s this sort of thinking and email that triggers my eyes to roll to the back of my head and grumble because it makes absolutely no sense to me. I’m an “Intuitive Thinker” who logically filters out noise, has strategies in place, and who only wants to bet on the markets when the odds are clearly in favor of making money, and I ignore the rest.
But, let me be clear about one thing, some of the best traders in my newsletter who have been with me for years are very Sensing and Feeling people.
What makes them different is that they know they need rules, systems, and guidance to navigate the market safely. They lean on me for that and are very appreciative of it. I won’t lie. It feels nice to be praised for my work by these individuals. They have a way of wearing their heart on their sleeve.
If you want to turn your trading and investing accounts around and watch your account grow, you need to make a change. I can provide you with everything you need, from ETF trading signals from my Consistent Growth Strategy to owning the hottest sectors during stock market rallies. I even provide autotrading, so if you don’t know anything about the markets or don’t have the time to learn or follow the trade signals, you can have them traded for you in your brokerage account at no additional cost from me. Learn More…
Recently I asked subscribers to tell me what I helped provide them with, overcome, figure out, learn, avoid, and master. These are the top things they said represented in a word cloud because it takes hundreds of comments and testimonials and turns them into bite-size data for you none intuitive thinkers.
I will now hand the reins over to you. Take this quick test, figure out how your brain works, read your complete personality profile, and let it sink in. Be proud of who you are and what makes you unique.
It does not matter which personality you are; we can all reach financial success together. As Oprah Winfrey said, “no one ever reaches success on their own. They always have help,” so I am here to help you.
Ok, It’s Test Time!
Myers–Briggs Type Indicator (MBTI) is an introspective questionnaire that tells individuals their preferences in how they communicate, interact with others, perceive the world, and make decisions.
The test assigns a value to each of four categories: introversion or extraversion, Sensing or Intuition, thinking or feeling, and judging or perceiving. One letter from each category is used to generate a four-letter result which is your personality type, such as “INTJ” or “ESFP.”
Free Test: https://www.16personalities.com
If you enjoyed this article, please share it with others, and be sure to join my free newsletter and have more articles like this delivered to your inbox.
Chief Investment Officer
Disclaimer: This email and any information contained herein should not be considered investment advice. Technical Traders Ltd. and its staff are not registered investment advisors. Under no circumstances should any content from websites, articles, videos, seminars, books or emails from Technical Traders Ltd. or its affiliates be used or interpreted as a recommendation to buy or sell any security or commodity contract. Our advice is not tailored to the needs of any subscriber so talk with your investment advisor before making trading decisions. Invest at your own risk. I may or may not have positions in any security mentioned at any time and maybe buy sell or hold said security at any time.