Know the secret of your success or failure in trading
(Between psychoanalysis and the labyrinths of candlestick patterns)
Were you the firstborn, the 'diplomatic' middle child, or the youngest full of energy and adventure? 🤔
Believe it or not... your order in the family can leave a mark on your decisions in the market, in terms of risk, patience, and even your reaction to loss or profit.
Let's dive a little into psychology and 'trading psychology', and see how each personality behaves on the chart.
The firstborn – the market general
> "Discipline is a religion for him... but sometimes excessive discipline wastes opportunities!"
Psychology says:
The firstborn is often responsible, organized, strives for perfection, and tends to lead. Family pressure and parental expectations make him aware of consequences and sensitive to mistakes.
In trading:
Loves a well-drawn plan and hates randomness.
Wait for complete confirmations before entering, sometimes to the point of missing the wave.
After a loss, he might enter a 'self-proving' state and try to recover the loss quickly.
The treatment recipe:
Allocate a small portion of the capital for quick experiments to break the fear barrier.
Rely on automated entry rules that give you a green light without overthinking.
Focus on the process, not the outcome, and celebrate sticking to the plan even if the trade loses.
The middle child – the adaptable maestro
> "Goes with the flow... but sometimes the flow takes him to a place he didn't intend!"
Psychology says:
The middle child develops high adaptability and diplomacy skills because he is always between two sides. He has mental flexibility but sometimes struggles with clarity of identity or making decisive decisions.
In trading:
Quick to experiment with new indicators and strategies.
Easily influenced by the opinions of others or the 'trend' in the trading community.
His big advantage: knows how to adjust his style if the market turns the table.
The treatment recipe:
Test any strategy over a fixed trial period before adopting it.
Limit yourself to a fixed monitoring list that reduces temptations. Allocate time for research and completely separate time for personal decision-making.
The youngest – the thrill-seeking adventurer
> "Enters the trade before finishing his coffee... and exits before it cools!"
Psychology says:
The youngest often bold, playful, loves experimentation, and sometimes rushes decisions. His upbringing with more flexibility makes him hate restrictions and seek excitement.
In trading:
Tends to high leverage and quick adventures.
Can achieve phenomenal profits or lose them just as quickly.
Attracted to hot news and sudden market movements.
The treatment recipe:
Set a maximum risk percentage for each trade and stick to it no matter what.
Use stop-loss and exit orders before entering.
Apply a 'cooling day' after a big loss, even if the market tempts you.
The enjoyable scientific summary
Evolutionary psychology and birth order studies say that your role in the family shapes your risk-taking patterns, patience, and emotional reactions.
But... the market only recognizes disciplined individuals who understood their weaknesses before their strengths, and turned them into strict rules that protect them.
Dear trader, what is your order: firstborn, middle, or youngest???
