Most trading psychology articles emphasize minimizing weaknesses rather than identifying Trading Strengths on the trading platform. This approach stems from the belief that fixing weaknesses automatically boosts performance, but that’s not always true.
Instead, focus on building your strengths first to effectively address shortcomings. But what exactly are strengths, and why is identifying them important?
Simply put, strengths are skills you excel at. However, unless you apply these strengths to achieve results, you might overlook them or mistake them for weaknesses.
Read More: Self-awareness Sparks Personal Growth
Identify your strengths in trading
How can you identify your strengths in trading? Here are effective strategies to help:
Review Your Trading Journals
If you follow my trading psychology blog, you know I stress keeping a detailed trading diary. Use it wisely! Analyze your records and pinpoint the trades where you performed best.
Focus on your top ten most profitable trades and ask: Which pairs did you trade? Did you follow your trading plan? Were your decisions based on technical analysis, fundamentals, or both? How long did you hold your positions?
Look for common factors that contributed to your success and note them carefully.
Make a list of your strength as a teacher
Identifying your strengths can feel overwhelming, but psychologist Brett Steenbarger suggests a practical approach using the VIA Survey from the VIA Institute on Character. This tool helps evaluate personal strengths.
Focus on your top five strengths from this list: creativity, curiosity, open-mindedness, love of learning, wisdom, courage, persistence, integrity, vitality, love, kindness, social intelligence, citizenship, justice, leadership, forgiveness, modesty, prudence, self-control, appreciation of beauty, gratitude, optimism, humor, and spirituality.
Next, think of specific ways to apply these strengths in your daily trading. For example, I identified “love of learning” as my top strength, which I leverage by studying various trading systems and reading extensively about the market.
Ask For The Opinions Of Other People.
Self-reflection is valuable, but others often spot strengths we overlook. Ask colleagues, trainers, and friends which traits they see in you that make a good trader.
Compare their feedback with your own list—you might be surprised by their perspective. Knowing your strengths is just as crucial as recognizing weaknesses, whether you’re facing losses or aiming to improve.
This article doesn’t dismiss the importance of addressing weaknesses. Rather, it highlights that identifying your strengths is key to unlocking your full trading potential.
Frequently Asked Questions
Why is it important to identify my strengths in trading?
Knowing your strengths helps you leverage what you do best, boosting confidence and improving overall trading performance. It also guides you in developing strategies that align with your natural skills.
How can reviewing my trading journal reveal my strengths?
Analyzing your trading journal highlights patterns in your most successful trades, helping you identify the techniques, pairs, or approaches where you excel.
What is the VIA Survey, and how does it help in trading?
The VIA Survey assesses your core character strengths, like creativity or persistence. Applying these strengths to your trading can improve decision-making and resilience.
Why should I seek feedback from others about my trading strengths?
External feedback offers new perspectives on your abilities that you might miss, helping you gain a well-rounded understanding of your trading strengths.
Can focusing on strengths improve my trading more than fixing weaknesses?
Yes. While addressing weaknesses is important, building on your strengths often leads to greater confidence and more consistent success.
Conclusion
Identifying your strengths in trading is a powerful step toward maximizing your potential and improving your performance. By reviewing your trading journal, leveraging tools like the VIA Survey, and seeking honest feedback from others, you gain valuable insights into what sets you apart.
Focusing on these strengths not only builds confidence but also helps you develop strategies tailored to your unique skills. Remember, while addressing weaknesses matters, nurturing your strengths is key to becoming a more successful and resilient trader.