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How you personality affects your trading decisions?

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How you personality affects your trading decisions?

Investor psychologists have studied different financial markets according to their behavior at the beginning and duration of investment as well as during extreme market fluctuations. During this research, 6 personality types of investors have influenced the capital markets more than other types.

How you personality affects your trading decisions?

The personality types of investors are divided into the following:

Idealist investor

People who have an idealistic personality type; They are too sure about their business talents and have high self-confidence in this field.

They are always optimistic about the market and do not consider information that contradicts their positive view.

Pragmatic investor

Pragmatic investors are the opposite of idealistic investors.

This category of investors have a realistic picture of their abilities and always consider the fluctuations and investment possibilities.

Framer investor

This group of investors evaluates and follows up their investment platforms with great care and obsession. They closely monitor the small and sub-segments of the investment and pay little attention to the overall plan and direction.

This group is less accurate in analyzing issues related to the path or fluctuations of the market and does not give much influence to external factors.

The main difference between them and others is that they have a significant amount of unused cash in their bank account instead of dividing the capital into several connected channels. Form-oriented investors unconsciously fix security prices by fixing their estimates of the market.


Investors consider all the external factors of the market when investing. They consider their various investment connections and understand their impact on each other.

This group has a complete understanding of the correlation of the performance of different sectors of the financial markets and they adjust their trend and capital portfolio based on these correlations.

Reflector investor

This group of investors hardly admits their mistakes and even after it is proven that the problem and loss is caused by their wrong decision, they are not in a hurry to correct their decisions and sometimes this takes them time.

Realist investor

This group of investors is not rigid and inflexible in facing the consequences of their wrong decisions. They accept the consequences of their mistakes and are always ready to solve the problem. These people never make excuses to justify the problem or loss and they don’t blame others.

A realistic investor takes full responsibility for his mistakes and does not feel overly sorry or remorseful about it. Therefore, fear does not come to them sooner and they make decisions in appropriate conditions and with a calm mind.

With these explanations, each of these 6 personality types of investors can be seen as opposed to the other and their opposites:

  • Idealist vs Pragmatist
  • Formative versus assimilative
  • Projective versus realist

5 personality types of investors

There is another category for investors in economic fields, which is based on the research conducted by the British Columbia Securities Commission in Canada called “National Intelligent Investor”. According to this research, investors are divided into 5 categories: fearless, hardworking, hasty, cautious and excited.

  1. Fearless investors. These people are very flexible in investing and are ready to accept anything that happens in the investment path. They are particularly extroverted and definitely interested in investing.
  2. The diligent investor The diligent investor is like an introverted version of the fearless investor. They know all the right investment behaviors and apply them.
  3. Hasty investors, these people are completely compatible with the market and investment trends. But much less than other personality types go to independent investment.
  4. Cautious investor These people are introverts and are not even interested in consulting with others regarding their investment goals and path.
  5. The emotional personality type does not want to enter the field of investment and business. But if he decides to do this, he does not do it without doing the necessary studies and research about the qualification or incompatibility with his nature and taste, or collecting information about the profit and loss in the market, and he always makes unstable purchases without thinking and preparation. It takes a risk. This group of people are especially likely victims for fraudsters and are most likely to be tricked by greedy people.

Final speech

In the end, being in the capital markets and having an independent job that does not require an employer and provides digital currency income more than the monthly salary is attractive to many people. But entering this field should be done with detailed research and sufficient knowledge. Entering any part of the market without sufficient knowledge of its advantages and disadvantages and without an accurate understanding of your personality type may lead to significant losses.