Are You a Type A or Type B Trader?

Type A, Type B. Alpha, beta. These personality types are thrown around in pop psychology a lot, but not a lot of people know exactly what they mean or how they relate to each other. You may already associate yourself with one or more of these personality traits, or other people may have said that you are a “Type B” or an “Alpha.” But what does that actually mean? And more importantly, how does it relate to your life as a binary options trader? Let’s explain these terms in detail, and then go over some best practices for your trading.

Type A vs. Type B Personalities

First off, I would like to begin by talking about Type A/B personalities. These terms were introduced in the 1950s, not by a psychologist, but by a couple of cardiologists, Meyer Friedman and Ray Rosenman. The two did a study and came to the conclusion that people with personality type A were twice as likely to develop heart disease as those who fell under category B. The study has had a lasting impact on the field of health psychology.

So what is the difference between Types A and B?

If you are a Type A individual, you are ambitious and a highly motivated self-starter. You take a proactive approach to getting what you want and need in life. You are highly organized in terms of time, space, and tasks, and are constantly striving to become more efficient with time management. Delays and uncertainty irritate you. You set goals and deadlines for yourself, you may be a multitasker, and you take on more than you can handle. You may not trust others to get things done. You need to feel in control (though you may rarely or never feel this way). You have a short fuse and a drive to compete. Your attitude is, “If I want something done, I have to do it myself.”

As you can see, there is a mixture of positive and negative traits here. Out of balance, a Type A personality will face a great deal of stress, and possibly even burnout. But with those traits in balance, a Type A personality is a self-starter and a go-getter who has the skills, motivations, and personality adaptations to carve out a dedicated path to success under challenging conditions.

If you are a Type B individual, you do not share Type A’s obsession with being in control. You have a greater sense of trust in ease in other people and life situations—and the universe in general. You tend to go with the flow, and you are more likely to delegate to others without hovering over them or micromanaging them. Type B people are not as obsessed with time management. Since they do not overload themselves with nearly as much responsibility, they find more time to reflect, relax, and create. They may explore ideas and concepts that Type A does not. Their stress levels are generally lower, and they are more laid back.

Type B personalities are also a mixture of positive and negative. On the surface, a Type B may appear to be better-adjusted, and in balance, probably is. Stress is a negative, and Type B personalities are much better at keeping things in perspective, which lowers their stress levels. They have a more realistic sense of what they can and cannot achieve in a given time span. They are often more skilled at working with others, since they treat them as though they can be trusted. Out of balance, however, a Type B personality may lack the motivation or skills to succeed, especially under rigorous conditions. Type B’s tendency to “go with the flow” can result in going nowhere.

Type D is not as widely known as Types A and B, but it is a third type. The “D” in Type D stands for “distressed.” Type D people are pessimistic about their prospects and have a tendency toward melancholy and social inhibition. They tend to self-isolate, while telling themselves that things are unlikely to go well. They fear that they will be rejected if they share their emotions, which causes them to wall themselves off.

This type of personality really has very little going for in terms of positives, except perhaps for a reflective tendency. It is essentially an imbalance, though. If you are Type D personality, your melancholic disposition and tendency to wall off can harm you when it comes to pursuing your goals.

Are You an Alpha or a Beta (or Omega)?

A related set of concepts in pop psychology is the whole Alpha/Beta personality type measurement. Often these terms are used interchangeably with Types A and B. Alphas are equated to Type A, and Betas are equated with Type B. The reality is though that this is not the case. Alpha, Beta, and Omega all are derived from pack relationships in nature, and refer to leadership positions.

• The Alpha is the recognized leader in a community.
• The Beta is the second in command, also in a leadership position.
• The Omega is the lowest subordinate caste.

In pop culture, most people actually are describing Omegas when talking about Betas. Becoming a recognized leader in your community makes you an Alpha or Beta. Being an Alpha is not the same as being a Type A. A Type B can easily become a recognized leader, and a Type A may fail entirely at leadership.

When it comes to your trading, you become an “Alpha” or “Beta” by becoming a leader. That means taking an active role in the binary options community and sharing your experiences and techniques with others. If you have a personality Type D, you will really struggle with this, but it is worth it to stop walling yourself off!

And that brings us around to specific advice for trading binary options for all three personality types: A, B, and D.

Trading Tips for Type A Personalities:

As a Type A binary options trader, you have some great personality traits working in your favor. You are ambitious and highly motivated, which will really help you since you are trying to start a new career from the ground up. Harness that energy daily and make the best of it. Be proud of the goals you set and the achievements you make. Use your excellent time management and organizational skills to their best, and you have a really good shot at making it to the top before others might.

But there are some cautions which you should observe as a Type A:

• You may have a tendency to set unrealistic goals. A Type A is exactly the kind of trader who may go into binary options saying, “I want to make a million dollars within a year,” and then get really stressed out when it does not happen.
• You may take on more tasks than you can handle in a small timeframe. Beware of workaholic tendencies! They are a major pitfall for Type A personalities. If you are overcommitted to success, you may end up neglecting other areas of your life, like health and relationships. Finding time to relax may be very hard for you. This can result in burnout and failure over time.
• Your fear of uncertainty and ambiguity may cause you to freeze up while you are trading. It may even cause you to avoid trading altogether. You may have a hard time letting go and allowing a trade to take its course.
• Minor failures may be overblown into major ones because you tend to take every failure hard.
• Your lack of trust may make it difficult for you to turn to others for help. You may believe you have to “go it alone.”

Be alert for these problems and do your best to prevent or mitigate them. Make the best of your efficiency skills and ambition, but try and keep them in perspective!

Trading Tips for Type B Personalities:

As a Type B personality, you have a number of traits working to your advantage. You have a great sense of perspective, which helps you to keep your priorities straight. You are less likely to neglect other areas of your life than an A Type personality, and remember to show care in your relationships and day job. You take time off to recharge, and your greater trust that things will work out help you to keep your stress levels low. This in turn may lead to a clearer head, and possibly great insights into trading when you least expect them. Working with others may be easier for you, and you may value input from your fellow traders more than a Type A.

But as with Type A, there are cautions you should observe as a Type B personality:

• Beware of a lack of ambition. You may not feeling as much of a driving motivation to succeed as a Type A, and that may prevent you from making the time and effort commitments you need to succeed in a tough field like trading. While you are less likely to set unrealistically lofty goals, you are more likely to underestimate the amount of time and work it will take to make it.
• The tendency to “go with the flow” can work great when there actually is a flow, but life does not always flow in the direction we want it to. Oftentimes, you will have to go against the grain or do something challenging or uncomfortable to get to where you want to be as a binary options trader. Trusting things will “simply work out” is a naïve attitude when it comes to trading.
• You may be very stress-averse as a Type B. Since you do not regularly subject yourself to great stress, you may try to avoid it here to your peril. Learning something as challenging as trading will impose some stress, and you will have to be willing to endure that if you want to succeed.

Your perspective and your sense of trust can really help you out as a Type B trader, but only if you are willing to balance those qualities out. You can quickly lose perspective if you are not willing to do at least some of the hard work and endure the stress that a Type A might be more willing to subject himself or herself to.

Trading Tips for Type D Personalities:

If you are a Type D, you are fighting against much bigger obstacles than a Type A or Type B personality is. Your predisposition toward melancholy may cause you to easily become distressed by your failures. You may from the start see learning how to trade or finding capital as insurmountable obstacles. Your tendency to wall yourself off can prevent you from getting the help you need from other traders to take strides forward.

If this is your situation, a good first step is to force yourself outside your comfort zone and start talking to other binary options traders. Even just getting more connected can help you to face your challenges. Others may have solutions for your problems. As far as cultivating optimism, that can be a greater challenge. Once you start experiencing victories though, you may develop a taste for success.

A Word on Community Leadership

As a newbie trader, you may have a vision of yourself someday as being on top of the world, a billionaire and a leader in the binary options community. Real leadership is not built on wealth, though, and if you want to join the “Alphas” or “Betas” in your community, the best way to do it is simply by becoming a great trader and helping others with the knowledge you develop! Do this and you will be recognized over time for your skill, consistency. and generosity. This is true whether you are a Type A, Type B, or even a Type D. And never deceive yourself that these Types are black and white or set in stone. You can train yourself to think and behave in new ways, and over time, you will hopefully adjust into a balanced personality that brings together the best of all worlds while leaving behind the worst.