Spread betting is often more appealing to people with an entrepreneurial mind-set.
So what are the psychological characteristics that make entrepreneurs take up spread betting?
A Risk-Taking Propensity
One of the primary characteristics is a risk-taking propensity. The kind of person who becomes an entrepreneur or starts spread betting is more willing to seek out risky ventures than most other people.
There is, however, a massive difference between a calculated risk and an impulsive decision. Successful entrepreneurs or spread bettors don’t take a risk without thinking about it first.
An aspect of this mindset is that many entrepreneurs or spread bettors don’t view their behaviour as particularly risky. They can see the potential rewards of a specific scenario alongside the risks.
Question: Why on Earth Should You Spread Bet?
A Need for Personal Achievement
Entrepreneurs and traders work hard for success, motivated not just by financial gains but by the need for a sense of personal achievement.
A crucial feature of the drive for achievement is learning from moments of failure and making sure not to make the same mistakes again. In spread betting and business it is important to adapt your strategy to changing conditions.
An Internal Locus of Control
Entrepreneurs and financial traders have a high tolerance for risk through possession of an internal locus of control.
An internal locus of control is the belief that your environment is controlled by your actions. Fate and luck are never perceived as variables. Profits or losses are down to your experience and abilities. This characteristic helps traders and entrepreneurs remain rational when making important decisions.
Finding Your Identity
Financial spread betting and launching a start-up force you to discover what kind of trader or businessman you are. Unlike other pursuits there is no-one telling you your role or giving you a specific brief. It’s up to you to find your edge.
A Tolerance for Ambiguity and Uncertainty
When it comes to running a business or trading the financial markets, nothing is 100% certain. A degree of tolerance for this uncertainty is vital to making the best possible decisions with the information available to you.
My Trading Skills offers a range of courses for those looking to avoid the typical mistakes made by newcomers.
Recommend reading: The Complete Beginners Guide to Spread Betting