FX Rates and Your Money Personality
There are five main money personalities that you should know about. Every FX rates trader will fall into one of these money personality categories. It is important that you know what these personalities are and how they affect your trading. Once you know what your personality is you can work around it to ensure that your FX rates trading is profitable.
The FX Rates Big Spender
As the name would suggest the money personality of the big spender is a trader who likes to spend money. These traders generally look at what they purchase as status symbols. These traders are generally comfortable with spending their money and don’t fear debt.
When it comes to FX rates trading this money personality will generally take a lot of risks. As they are happen to spend their money they will place more than needed in any trade. These traders also have a lot of systems and software that they may not actually need.
This money personality includes all the traders who want to save their money and not spend when they do not have to. This money personality is often considered frugal and a penny pincher. However, they often have some money stashed away for when times are hard.
When you look at trading these traders will not use big risks with their trades. However, they may also be susceptible to under trading because they are overly cautious. The profits that they make on the market are usually lower than other traders because of the caution they use.
Shoppers are an odd money personality because they spend their money because they feel satisfied when they do this. These traders often buy something purely for the sake of shopping and no other reason. A lot of the items that these people buy will never be used.
This money personality creates two different types of traders. The one trader is the regular trader who gets emotional satisfaction from opening a position on the market. These traders do not care if the position makes a profit or loss because they already gained their satisfaction. The other trade type is the one who constantly says that they will trade, but never actually get around to it.
Most people assume that this money personality is someone who has no clue how to handle money. While this is true for some of these people others simply never take the time to consider their finances. Traders who fall into this money personality often don’t trade very much because they do not have the income needed for the capital.
Of course, the debtors that do trade will do so sporadically. As these traders do not often consider their money they do not have a handle on what they are doing with it. This means that they often forget that they have a trading account at all.
The investor is a money personality who knows exactly where all their money is going and what it is doing. These traders are on top of their financial situation and never let it stray out of their control. These traders will look more at passive income and are known to be long-term traders. Most of these traders do not actually trade very much on the forex market.