The Administrative Trader
The Administrative Forex Trader is the second psychological profile that we will discuss in our series on Dr. Van K. Tharp’s trader personality types.
This trader type would suggest an individual who is naturally very rational and practical, and who possesses the capability to be decisive when the situation calls for it.
All of these characteristics are very useful in trading and hence the administrative trader has a lot of potential to become an excellent Forex trader, although there are some areas that usually they need to improve on.
Administrative Forex Trader Qualities
The Administrative Trader is also capable of taking the appropriate action in the heat of the moment or when a certain situation demands it. This is a very good characteristic for a Forex trader because unexpected events happen quite often and this can help them greatly to be on top of the game.
Since they are very pragmatic people, administrative traders will naturally gravitate toward the concrete matters – especially when they are deciding what to do in a given trading situation. Any decision they make will be based on hard facts and logic which is also probably why it’s easy for them to make quick but good decisions.
This is a great attitude for a trader because as we know the market does what it wants to do regardless of how we feel about it, so focusing on concrete facts is certainly a very valuable characteristic.
Administrative Forex Traders will usually strive to run things fluently and so they will normally do everything they can to make things run in a productive and smooth manner. They have the capacity to lead when they find themselves in situations with other people or groups of people.
Administrative traders in most cases will excel in organizing things and people. They can systemize a trading strategy well and define clear guidelines for how it needs to be used which enables them to develop good and reliable trading plans. Keeping a regular trading journal is also something that comes naturally for them.
Administrative Forex Traders are normally able to execute a good trading plan in an accurate and precise manner - flawlessly and with ease.
Thus their trading strength is to have a concrete and clearly defined trading plan which enables them to make pragmatic decisions without relying too much on gut feelings.
Administrative traders normally also have good decision-making mechanisms and this along with planning is a tremendous advantage for them. They can handle different situations well and generally can keep their emotions detached from trading decisions for most of the time.
Their preference to have a well-defined trading plan and their ability to be decisive enables them to deal with unpredictable situations highly efficiently.
Administrative Forex Traders may spend too much time on the developing phase of a trading system and may, therefore, end up spending a lot of time on the details of creating and refining the perfect trading plan rather than pulling the trigger and trading the market with it.
But as we know the market is rarely perfect, thus the challenge and, if left unaddressed, potential weakness for administrative traders.
Being concrete and precise is certainly a very positive characteristic for Forex trading, however, being too focused on details and rules can be counter-productive because trading is not an exact science and often times a more relaxed approach will work better.
In the end, the administrative trading personality type can become a great Forex trader with the right attitude and approach. They need to master how to implement their pragmatic characteristics when trading the market more than when making trading plans.