Dr. Van K. Tharp is a professional psychologist and trader coach who has come up with a very interesting set of trader personality types that novice forex traders can use to help assess their psychological suitability for the forex trading arena.

Each of the fifteen trader types identified by Dr. Tharp conforms to a certain trading psychology profile. The characteristics, strengths and weaknesses of each of these profiles are discussed in greater detail by Dr. Tharp in his writing on the subject, as well as on his website.

The Trader Personality Types

Dr. Tharp's trader personality profiles include the following fifteen general types:

• The Accurate Trader

• The Administrative Trader

• The Artistic Trader

• The Adventurous Trader

• The Detailed Trader

• The Facilitative Trader

• The Fun Loving Trader

• The Independent Trader

• The Innovative trader

• The Planning Trader

• The Socially Responsible Trader

• The Spontaneous Trader

• The Strategic Trader

• The Supportive Trader

• The Values Driven Trader

Dr. Tharp offers a free trader personality test assessment on his website that you can take to find out what type of trader personality group you tend to fall into.

Characteristics of a Successful Trader

Dr. Tharp has identified three primary psychological elements which all of the great traders he observed tend to share. These desirable traits for traders consist of the following characteristics:

1. Being able to grasp the big picture, to make connections and to recognize fresh possibilities.

2. Being able to use logic and analysis to base decisions on.

3. Being orderly, decisive and able to operate sequentially.

Personality Types Best Suited for Trading

Only two trader personality types have all of the desirable characteristics of a successful trader. These are the Strategic Trader and the Planning Trader.

Traders that fall into these personality types have the best probability of success as traders. Not only do they tend to have the greatest financial success when trading, but they also have what it takes to operate in the markets efficiently and profitably.

Personality Types That can Succeed at Trading With Some Work

A larger group of ten trader personality types have one or two of the desirable personality characteristics of a successful trader.

The personality types that fall into this category consist of the Detailed Trader, the Facilitative Trader, the Innovative Trader, the Spontaneous Trader, the Independent Trader, the Administrative Trader, the Values Driven Trader, the Socially Responsible Trader, the Accurate Trader and the Adventurous Trader.

Such traders need to work on developing the additional characteristics of successful traders that they initially lack.

Personality Types That Find Successful Trading Hard Work

At the bottom of the trading potential totem pole are three trader personality types that may well be better off leaving trading their money to others. These consist of the Artistic Trader, the Fun Loving Trader and the Supportive Trader.

Individuals that fall into this group are somewhat challenged by trading and will often find trading successfully to be hard work. While the possibility of success as a trader exists if they are willing to work hard at it, they may do better as investors by lending their money to others to trade forex for them.

Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.