There are five general brain types Among traders
People with Compulsive Brains tend to get stuck in a particular thought about the market. “It’s too high.” “It’s too manipulated.” “It’s too risky.” It’s too…” whatever. People with Compulsive Brains tend to operate entirely on their own terms and are generally not open to feedback or other options.
People with Impulsive Brains are the exact opposite. They are unpredictable and lack impulse control in trading and in daily life. Without much discipline, they trade in many instruments and end up being a LOSER.
People with Anxious Brains jumps too early or too late in the trade. They pay more attention to the obstacles to their own success (or the success of others) than to the ways that something might work. They don’t like to try new things.
The fourth type is the Depressed Brain. These people tend to feel victimized by the market. They have a NEGATIVE mentality, believing that they will never make money but still keeps trading thinking LUCK will change. They blame the RBI, ALGOS, the news, company management, or whatever for their trading troubles. This type of thinking rationalizes and justifies their pre-existing mood.
The fifth type is a combination of Compulsive and Impulsive. These folks tend to be compulsively impulsive, which may mean that they have an addictive relationship to the market and to trading. They overtrade because they are trading-to-trade, like a mouse pressing a lever to generate pleasure signals in their brains