A trader will be useless if he has no personality. He can have all the trading knowledge on Earth, but without a personality, there’s no way he’ll ever make it on Wall Street. On the other hand, having a compelling and resilient personality is all that matters to determine success.
Success in such a competitive environment like Wall Street requires more than just raw talent and IQ (see it here). Some people need an extra edge. There are specific traits that push some above-average traders to be great traders: these exceptional individuals need something extra to outcompete their counterparts; they need strong personalities.
Score higher in openness
People who prefer pro-options trading tend to score higher than the average Openness score on surveys. Being open to new experiences and opportunities is an essential aspect of trading. Not only because every trade has a chance to be successful, but also because we can learn many valuable life lessons from our failures.
We should become more open and accepting of the things we cannot control (random outcomes).
Traders who prefer pro-options trading should be more willing to try new things rather than stick with tried and true strategies; however, those who search for these novel experiences tend to have a more challenging time sticking with their goals following through with them.
Scores lower on conscientiousness
A distinct trait that separates pro-options traders from the rest is the lower-than-average score on conscientiousness surveys. Although this may sound like a negative trait at first, it’s a necessary evil for pro-options traders to be successful.
Traders should not obsessively pick apart their every move and carefully weigh all outcomes before acting; they need to take action when the time comes rather than wasting energy worrying about trivial details that can change instantly.
Higher social dominance scores
Individuals with a preference for pro-options trading tend to have a higher Social dominance quotient but a lower emotional stability score. Having high Social dominance is essential for getting what you want without concerning yourself too much about others.
People who prefer options trading aren’t risk seekers, so they won’t take physical or financial risks in any situation where the downside is too significant. Although these traders may not be willing to put their money or safety on the line for trivial gains, they are likely to use aggressive tactics when necessary.
Have a hard time focusing on one thing
Individuals with a preference for pro-options trading tend to perform poorly on tests that measure distractibility and focus. They also score low on conscientiousness. It might seem like another negative aspect of this personality type, but it’s a critical trait that separates successful traders from unsuccessful ones.
Traders need to switch between many different tasks quickly to capitalise on changing market conditions and manage their finances and personal life. The best traders are those who can throw themselves into a project with 100% of their attention without getting distracted by other things.
More extroverted than average
People who prefer pro-options trading tend to score higher on extroversion surveys; they enjoy spending time with other people and aren’t shy or reserved about expressing their opinions. It isn’t precisely the essential trait for success in trading, but it makes it easier for these traders to network with others and find potential clients.
Although introverts can also be talented traders (they may focus on work better without distractions), many struggle with networking because it requires interaction with strangers who can unknowingly sabotage their efforts by starting unnecessary arguments about politics or religion, etc.
More open to new experiences
Having a preference for pro-options trading is associated with scoring higher than average on the openness scale. It doesn’t necessarily mean that every trader who prefers this trading style will enjoy attending raves or having tattoos. Still, it does mean that these individuals are likely to be more open to different cultures and experiences in general. However, many people might view this as another negative trait (it can lead to drug use and risky behaviours).