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INVESTMENT AND PERSONALITY

Borsa

'Unless your IQ is below 25, your investment success has nothing to do with IQ. If you are a person of normal intelligence, you need one thing: to have a temperament to control the impulses that get other people in trouble in the investment business. ''

Warren buffet

There are many quotes that are similar to Warren Buffet's quotes. What is meant to be expressed in all of them is that there is no clear link between the level of intelligence and earnings, and the common characteristic of investors or traders who gain a steady profit is that they can restrain the above-normal impulses and emotional movements.

Because you are human, you have feelings. You cannot be unemotional. When emotions are used in the motivation process, it provides very good results. When taking action after motivation is not used in the implementation phase, bad results occur. We mentioned that there are mechanical trading systems and algorithmic trading systems created to prevent this. If your emotions get in the way of your mind, I would like to point out that these systems will not be of any use. The best way to understand this is to objectively evaluate what you experienced that day at the end of the day you trade. You can keep a "investor diary" style diary for this.

For example:
In ASELS stock
1) In the upward movement that starts after the support
2) Above the RSI average, as it approaches the 50 level.
3) Considering the narrowing bollinger band.
4) OBV that broke its mean up.
5) As I've observed a relative increase in trade data over the past 15 days.
6) Because the CCI indicator breaks its average above -100.
7) I bought at the level of 10.20.
8) My stop level is based on volatility, 10.05
9) 11.05 price level due to close proximity to previous resistance zone and fibo level for profit taking.
10) For trend tracking, I will use trailing stops that I will use based on percentage after 11.05.
11) Depending on the index momentum, if there is a negative mismatch at CCI-MOMENTUM-RSI on the hourly chart for profit taking in intraday movements, I will go to profit realization.

You can make a plan in the shape of. If you pay attention, the reasons for buying, exit with loss method, profit taking method, early exit method for possible changes during the day are all determined. Is it necessary to go into such detail? Why not go into details? You buy stocks to earn money.

Then how much can you apply what you wrote, at which points deviations occur, can you make one-to-one application at the reference values you set during the day, or do you fit into the market in every trading wave that occurs in the market? Write them one by one at the end of the day by being honest with yourself, identify the problems in detail and produce solutions. Believe me, there is no other way to win.

According to the researches, when successful traders are examined, two main characteristics emerge as personality.
1) Emotional balance
2) responsibility

In a position taken thanks to emotional balance, the results are perceived as just a sign. If it turns red at the traffic lights, you will stop. If it lights up green, you will pass. You are in a hurry, you have to catch up. How would you move? There is a rule of thumb, this rule is that you have to stay in the red. Someone with emotional balance plays the game by the rules. If his training says he should stop, he stops his movement. Because his emotions are shaped that he must obey that rule in order to protect his body integrity. The yeast of this whole process also emerges as a responsibility.

I think every person is unique and it is not healthy to imprison people in certain patterns in order to improve them. That's why I am in favor of the trader to act in accordance with his or her own personality traits after learning the main rules of investment. Just like the price fluctuates up and down when the main trend is up.

In order to reveal a positive value at the end of the day or in the trading process, the trader should not be biased for rising in long positions and should not be biased for falling in short positions. He should be able to move without being tied to his ego. While doing this, he should be able to maintain his expectation from the long or short position he has taken. In the last stage, it should not focus on the results. If you focus only on the result, you will not be able to stop as the damage level on the screen grows. Here again, the decision-making process that you have determined before comes into play. There is a rule for overtaking cars in traffic, there is a rule in terms of trade. If your aim is just to overtake the car in front of you, if you do not take into account the car coming in front of you, if you do not control the car coming from behind, whether the weather is rainy, slippery ground, your car tires, etc. If you don't take all this into consideration, if all you know is just overtaking and passing the car in front of you, you might do it a few times, but you will definitely crash one day. Trade is also the same. You have a decision process while overtaking the car. Where will you signal? Where will you shift?

One of the ideas that I persistently defend not to focus on results is; 100 thousand TL should be what 10 thousand TL is to you. What matters here is the liquidity of the instrument or the market you invest in. If you can easily buy and sell 10 thousand TL, this should be the same within 100 thousand TL. If it's not the same, you are thinking result-oriented. And you don't trust the strategy you are using. If you don't trust your system, why are you still using it? I am stressing that the effect of the amount is only related to whether the market you enter is liquid or not. When you buy, you must buy as much as you can sell.

Your life is important! Your money matters! Property is the chip of life.

A trader admits that he could be wrong. Stop means that you are wrong. Change starts with acceptance. If you do not admit that you are mistaken, you will continue in the opposite position and say I am a long-term investor. If you have a stubborn personality, if you are not flexible and if you have a perfectionist personality, you cannot sell that instrument in your stock. It means that you cannot maintain your emotional balance and responsibility.

If your risk threshold is low, you should position accordingly. But the stop distance you will put should be at a level to meet the volatility that is in the normal course in the market. Otherwise, you will stop frequently and increase your transaction costs.

Your maturity is unique to you. According to your term, the graph you examine technically in the analysis process changes in the period. I personally enter the position according to the daily and hourly charts and sell only with the trailing stops according to the 5-minute and hourly charts. Because this way I can see the movements of the market more clearly. A friend of mine was buying from a very nice place and selling from a very nice place according to the 5-minute charts for daily trade. Although he explained all the trading rules in detail, I could not. When evaluating a system, I did not succeed as I first started to examine the weakest part and focused on catching the vulnerability. This was a disadvantage for me in the 5-minute charts, but I was able to achieve success because I could move flexibly according to my own buying strategy. Not everyone can use every healthy system. That's why I never hid systems that I created instead of people hiding their trading strategies. Because if it was suitable for the person's own characteristics, he could use it. If not, he would say that this system would not work.

AUTHOR:

Ali Erkan TANACIOĞLU

“Investment information, comments and recommendations contained herein are not within the scope of investment consultancy.

Investment consultancy service; It is offered within the framework of an investment consultancy agreement to be signed between brokerage houses, portfolio management companies, banks that do not accept deposits and the customer.

The ratings contained herein are based on comments and personal opinions. These views may not be suitable for your financial situation and risk and return preferences.

Therefore, making an investment decision based solely on the information contained herein may not produce results in line with your expectations. "

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