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Do Personality Traits Relate To Trading Success?

In short, the answer is ABSOLUTELY YES!  However, it's not quite that simple.  It's not about whether your personality is suited for trading - it's about the proper process to follow as a trader that is suited to YOUR personality.  To do this you must first understand your personal makeup.  This process is neither an admission of success nor failure - it serves a much more important purpose.  Knowing your personality profile allows you to design a trading plan that caters to your strengths, keeping you dialed-in to your personal process for consistent success.

This is a major oversight for most traders - following a 'plan', but not one that is designed or suited for their specific personality.  Because of this disconnect, results are mixed, and always end up being less than desirable.  It's not a personality flaw; it's a trading plan mismatch.  So, how can you prevent this from happening to you?  Perhaps the question should be how can you prevent this from CONTINUING to happen to you?  Think about this for a moment... what if you had access to a resource that allows you to do some 'introspection', learn a bit more about your specific makeup, and based on this new awareness design a plan that is sensitive to your strengths.  As individuals, we possess unique personalities and character traits.  The market carries these traits as well - certain stocks are pretty 'happy go lucky', some are perpetually negative, and then there are the 'bi-polar' types of stocks that are always interesting to track.

The point here is there isn't one personality type that is best suited for trading.  Quite the contrary, every personality type is suited for trading.  The key ingredient is personalizing your objectives, goals, approach and plan to your specific strengths.  With that said, would you find it helpful to determine your trading personality, and more importantly the personality of your trading plan?  Think about asset allocation and risk management.  Are you weighing the profile of each trade against your risk capital, probability to fulfill, and based on this 'personality analysis' adjusting your capital allocation to fit your personality profile? 

This type of self-awareness is embedded in our training curriculum, and we have specific breakout sessions designed to focus exclusively on this very important criteria.  I'm sure you've probably heard 80-90% of failure is attributable to the psychology of trading, roughly translated to mean emotional involvement is typically the culprit for a failing plan.  We cannot remove emotion, but we can harness its energy and channel it properly.  This takes practice and structured guidance.

Being able to compartmentalize what will help you succeed (personality strengths) versus what will prevent success (rash, emotional, or 'gut' decisions) is a KEY ingredient for consistent success.  At the end of the day, that is why we are in the market - to move the needle in our favor, make our life more comfortable, and generate additional means to help others whether it's donating your time (because you can), or writing a check to help a worthy cause.

That, my friends, is why we trade.  We have strength in numbers, and the most highly respected interactive curriculum in the World of Options.

 

May Expiration - Live Exit Results

This past Friday we hosted our Monthly Member-Only Live Trade Exit Class for May Option Expiration.  Here is a brief summary of the trades closed, strategies applied, and of course... the RESULTS!

HTZ – Hertz Global May Bull Put = 33%                                 MUR – Murphy Oil May Iron Condor = 19%              

CTRP – Ctrip.com May Iron Condor = (100%)                     RAX – Rackspace Hosting May Reverse Iron Condor = 79%

WFM – Whole Foods Market May Iron Condor = 22%           A – Agilent Technologies May Iron Condor = 43%

LNKD – Linkedin May Iron Condor = 19%                               LMT – Lockheed Martin May Bull Put = 16%

ALL – Allstate May Bull Put = 27%                                           ALL – Allstate May Bull Put = 117%

SNE – Sony May Reverse Put Butterfly = 43%                        DISH – Dish Network May Bull Put = 25%

DISH – Dish Network May Iron Condor = 54%                       CSCO – Cisco Systems May Iron Condor = (100%)

MSFT – Microsoft May Reverse Call Butterfly = 46%            MAR – Marriott May Iron Condor = (36%)


All in all, another fantastic month at ETNtrade!  If you are interested in learning more about our services and upcoming training classes, please email us at Support@ETNtrade.com

We would love the opportunity to answer any questions you may have.

~ DanTrader 

It's GOOGLE Time!!!

Today after the market close Google (GOOG) will announce their quarterly earnings.  We are currently hosting a complimentary Live Trading Session that was open to the general public to register and attend live with us.  If you're not currently on our invite list for these events, make sure to use the email below to contact us and we will add you for the future!!!

Here are two of the trades we discussed based on our analysis, with GOOG trading at $761.72:

1. April 750/770 Strangle for $27.65 (very aggressive trade)  ~ this is not the preferred trade due to the very large capital outlay, but it is viable for those that wish to carry the risk for the potentially unlimited reward.  Realize however, you will need a move of at least $38 just to get to your break even in the trade, so to be profitable you must be very confident GOOG will move well over $40...

2.  April 740/745, 785/790 RIC for $3.45 (very high probability/great profit potential) ~ this is a "reverse iron condor".  Notice we've reduced our capital risk versus the strangle by 88%!!!  We also have 45% profit potential in the trade and ONLY need a $20 on the stock to make it.

I simply wanted to document the two trade examples we gave everyone in attendance LIVE, with REAL-TIME chart and option chain analysis.  Bottom line is what we do works, and I am confident when I blog regarding this trade tomorrow we will be very happy with our trade results!!!

If you want to learn more about working with ETNtrade  as an Active Member, please send an email to Support@ETNtrade.com

~ DanTrader

Our Thoughts and Prayers for Boston

On behalf of our Members and Elite Traders, ETNtrade would like to send our condolences to those effected by the events at the Boston Marathon this past Monday.  Please know you are in our thoughts and prayers.  God Bless!

Reminder: Market Holiday March 29th

For those of you who trade Weekly or Quarterly Options, please keep in mind they will be expiring on Thursday, March 28th this week.  This also presents an unique opportunity in our Monday Live Trading Class to enter trades with only 3-4 DTE next week, as well as trades that will incur extra day of Theta over the weekend if applicable.  Let us know if you have any questions, and we look forward to trading with all of you on Monday. 

ETNfree

Next Free Webinar Event:

 The ETNtrade Trading System

Focus: Introduction to Options

Thursday, March 7 @ 1pm ET

Click Here to Register

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