Van K. Tharp, Ph.D.
Putting Peak Performance to Work for You
When Will the Bear
Market Return?
By
Van K. Tharp, Ph.D.
I I
n October 1999, I wrote an
article suggesting that the
market top was right around
the corner – based on psychology.
It now seems to be that it is time to
revisit the same theme. Psycho-
logically, the market seems ready
for a top. In March 2003, The Ox-
ford Club’s Investment University
had about 60 attendees. In March
of 2004, the same workshop had
about 230 attendees. People are
now very interested in the stock
market again. And, the current
market valuations, in my opinion,
are just as crazy as they were in
early 2000. As a result, I thought
it might be appropriate to reprint
that article from 1999.
Written in October 1999: I’m
beginning to see psychological
criteria in the U.S. stock market
that suggest a major top. These
are the same sorts of behaviors
that lead me to suspect that tops
were occurring in the Malaysian
and Greek markets on various
trips.
Last weekend we did our sys-
tems seminar. At the end of the
Bear Market Return?: ...
continued on page eight
UNDERSTANDING
PERSONALITY TYPE:
The Enneagram
By
Carol Adams, Ph.D.
n his free weekly newsletter, simply “diagnosing” personality traits
Tharp’s Thoughts, Van has been without the technology to make needed
focusing on Personality Type. changes.
He has been reviewing the My-
Inherent in any discussion on person-
ers-Briggs Type Indicator as it relates
ality type, of course, is the idea that
to trading. Van has been discussing
discovering our “personality type” puts
the four pairs of traits in general and
us “in a box.” The truth is that when
also discussing the profile of the suc-
we discover our “personality type,”
cessful trader. This is a constructive
we see that we are ALREADY IN A
way of using the information gleaned
BOX, meaning we exhibit predictable
from studying personality type. It is
behaviors and attitudes according to our
helpful to see the strengths of any given
designated personality type. The real
personality type and to capitalize on
purpose in studying personality type is
them. It is also useful to be aware of
to discover what boxes we are already
the weaknesses in order to avoid the
in so that we can transcend them, or
pitfalls that are associated with those
“break out!”
weaknesses.
If there is an optimum profile for a
The Myers-Briggs simply points to
trader, we need to understand what
people’s “preferences.” It does not
those traits are and acquire them. In
mean that they cannot develop their
fact, what I do in my consulting practice
strength in all categories; it simply
is to reprogram the “weak links” of any
means that left to their own devices,
given personality type, as well as to
they will follow the pattern of their own
facilitate the installation of new, desired
personality type. One of the important
programming.
aspects of discovering personality type
As much as I appreciate the My-
is to ascertain areas of improvement
ers-Briggs, it does not measure ALL
so transformational work can be done
components of personality type, nor
by the individual to overcome any
does it take one’s mental and emotional
shortcomings they uncover. That is the
focus of the work I do at the Academy health into account. Therefore, to round
of Self-Knowledge. I find NO value in
Continued on page two
Volume 9, Number 3 (124) March 2004 ©2004, IITM, All Rights Reserved

out the topic of Personality Type, we
are going to look at another system
of personality typology called the En-
neagram. Again, I will point out the
various traits of the personality types
as they relate to the characteristics of
an optimum trader.
Just as numerous authors such as Da-
vid Keirsey, have studied, interpreted
or simplified the Myers-Briggs Type
Indicator and added their own varia-
tions, there are numerous “camps” in
the Enneagram as well. My personal
preference is the work of Don Riso and
Market Mastery
PUBLISHER/EDITOR
Van K. Tharp, Ph.D.
PRODUCTION DIRECTOR
Cathy W. Hasty
Editorial Advisory Board
D.R. Barton Jr.
This publication is intended to be in-
structional and should not be construed
as a recommendation to buy or sell any
futures contracts, options, or stocks.
Trading is extremely risky and may re-
sult in substantial losses. The informa-
tion offered is gathered from sources
believed to be reliable as well as from
experiences of the editors. The publish-
ers and editors assume no responsibil-
ity for errors or omissions or any losses
resulting from the use of the information
contained in this publication.
HYPOTHETICAL OR SIMULATED PERFOR-
MANCE RESULTS HAVE CERTAIN INHERENT
LIMITATIONS. UNLIKE AN ACTUAL PERFOR-
MANCE RECORD, SIMULATED RESULTS DO
NOT REPRESENT ACTUAL TRADING. ALSO,
SINCE THE TRADES HAVE NOT ACTUALLY
BEEN EXECUTED, THE RESULTS MAY HAVE
UNDER-OR-OVER COMPENSATED FOR THE
IMPACT, IF ANY, OF CERTAIN MARKET FORC-
ES SUCH AS LACK OF LIQUIDITY. SIMULATED
TRADING PROGRAMS IN GENERAL ARE ALSO
SUBJECT TO THE FACT THAT THEY ARE DE-
SIGNED WITH THE BENEFIT OF HINDSIGHT.
NO REPRESENTATION IS BEING MADE
THAT ANY ACCOUNT WILL OR IS LIKELY TO
ACHIEVE PROFITS OR LOSSES SIMILAR TO
THOSE SHOWN.
Market Mastery is published by International
Institute of Trading Mastery, Inc., 519 Keisler
Dr., # 204, Cary, NC 27511, Telephone (919)
852-3994; Fax (919) 852-3942; web site www.
iitm.com ©2004 by IITM, Inc. All rights re-
served. Reproduction in whole or in part with-
out express permission is prohibited.
Market Mastery
Russ Hudson. I am certified to teach
their material. The information I share
in this article reflects the Riso/Hudson
point of view.
In Discovering Your Personality Type,
Riso and Hudson write:
“The Enneagram is a geometric figure
that delineates the nine basic person-
ality types of human nature and their
complex interrelationships. Each of
these nine types has its own way of relat-
ing to others, its own set of perceptions
and preoccupations, its own values
and approaches to life. Each relates to
others in different but understandable
ways. The Enneagram helps everyone
understand that there are nine differ-
ent points of view, nine distinct sets of
values, nine different communication
styles, nine ways of solving prob-
lems-and so forth- that are all equally
useful and valid. All of the types have
something necessary to contribute to a
thriving, balanced world.
As a typology, the Enneagram helps
people recognize and understand
overall patterns in human behavior.
External behaviors, underlying at-
titudes, one’s characteristic sense of
self, conscious and unconscious moti-
vations, emotional reactions, defense
mechanisms, object relations, what we
pay attention to, our spiritual barriers
and potentials-and much more- are all
parts of the complex pattern that forms
each personality type.”
The Enneagram has nine major types
and are labeled by number one through
nine. Each type has a sub-type. The
sub-type consists of the main type
plus many of the characteristics of the
number right next to it, which is called
a “wing.” For example, a person’s type
might be a four with a five wing, or a
seven with an eight wing.
In addition to the main type and a wing,
there are nine levels of development
for each type. These levels address
2 ©2004, IITM, All Rights Reserved
the mental and emotional health of the
individual. Levels one through three
are considered “healthy”; levels four
through six are considered “average”;
and levels seven through nine are in
the “unhealthy” category. This makes
a lot of sense and gives a great deal
of range in behavior. For example,
type eight, “The Leader” is heroic in
the healthy category, “driven” at the
average category, and “dictatorial” in
an unhealthy capacity. It is amazing
the see the range of behavior in the
same personality type, depending on
the levels of health.
Free Test
It would be useful for you to take a
free test at www.EnneagramInstitute.
com. When you get to the home page,
there is a menu on the left side. Click
the “Free RHETI Sampler.” As soon
as you get on that page, scroll down to
the instructions because there are a lot
of things to click on that will take you
off of that page. Just keep scrolling
until you get to the instructions for the
test. It is a 36-question test you can
take for free. You can also take the full
144-question test for $10 online.
I will now begin going through the
various types to discuss their attitudes
and behaviors in general, as well as
how they relate to trading. In the En-
neagram system, we always begin at
two and end at one. This is because the
nine types are placed in triads: 2-3-4;
5-6-7; 8-9-1. So let’s begin with type
Two, The Helper.
Type Two: The Helper
The Demonstrative, Generous,
People-Pleasing, Possessive
Person
The basic desire of the Helper is to be
loved unconditionally. The secondary
desire is to do good things for others.
The basic fear of the Helper is being
unwanted and unworthy of being loved.

The secondary fear is that their own
needs and negative feelings will harm
their relationships.
At the healthy level, they are altruistic,
loving and compassionate. The average
Two is well intentioned and intrusive,
giving unwanted advice. At the un-
healthy level, the Helper feels abused
and victimized.
Examples: Mother Theresa, Archbishop
Desmond Tutu, Eleanor Roosevelt,
Barbara Bush, Leo Buscaglia, Luciano
Pavarotti, Barry Manilow, Richard Sim-
mons, Sammy Davis, Jr., Pat Boone,
Ann Landers, Florence Nightingale.
In Understanding the Enneagram, Riso
and Hudson write about the charac-
teristic temptation of each type, the
“cognitive error” of each type, and
make a recommendation for each:
“Characteristic Temptation: To believe
they are without needs and are always
well-intentioned. Average twos begin
to think of themselves as entirely well
meaning and always completely lov-
ing toward others, totally without any
ulterior motives or emotional needs
of their own. When they are unable
to acknowledge their own needs they
must find ways to maneuver others into
fulfilling them.”
“Cognitive error: believing that their
value depends on the positive responses
of others, and that only by getting
others to respond to them is certain
specific says will they feel loved and
worthwhile.”
“Recommendation: to love others
selflessly is an extraordinary achieve-
ment—one of human nature’s very
highest powers. If you have achieved
the ability to love others unselfishly, you
are already an extraordinary individual.
If you develop your great capacity to
care about others, you will never go
far wrong—in fact, you will do a great
deal of good in life. Others are prob-
ably already seeking you out because
Market Mastery
you possess what everyone wants: the
ability to love and appreciate others for
who they are.”
Helpers and Trading:
If this type were interested in trading,
the desire to make money most likely
would be to support a worthy cause.
Type Three: The Motivator
The Adaptable, Excelling, Driv-
en, Image-Conscious Person
The basic desire of the Motivator is to
feel valuable and worthwhile. Their
secondary desire is to be “all that they
can be.” The basic fear of the Motivator
is of being worthless. Their secondary
fear is that they will be rejected.
At the healthy level, they are authentic
and self-assured. The average Motivator
is status-conscious and self-promoting.
At the unhealthy level, the Motivator
can be deceptive and opportunistic.
Examples: Bill Clinton, Christopher
Reeve, Michael Landon, Richard Gere,
Shirley MacLaine, Jane Pauley, Paul
McCartney, Sting, Tom Cruise, Sharon
Stone, Tony Robbins, Bryant Gumbel,
Dick Clark, Kathie Lee Gifford, Denzel
Washington, Sylvester Stallone, Arnold
Schwarzenegger, O.J. Simpson.
Riso and Hudson comment about the
characteristic temptation of each type,
the “cognitive error” of each type, and
their recommendation is given below:
“Characteristic Temptation: To con-
stantly push themselves to be ‘the best.’
Average Threes want to distinguish
themselves in some way to defend
against underlying fears of worthless-
ness. They can become caught up in
a relentless drive for success as well
as the need to demonstrate their su-
periority to others. They also begin
to compare themselves with others,
looking over their shoulders and redou-
bling their efforts to stay ahead of the
competitions.”
3 ©2004, IITM, All Rights Reserved
“Cognitive error: Thinking that their
value comes from their ‘performance’
or their external image—how successful
they are in terms of wealth, social stand-
ing, or professional accomplishment.”
“Recommendation: As is true of all the
types, Threes have spiritual capacities
and can develop themselves into the
best persons they can be. Many of your
strengths already lie in this direction, so
follow them. Do not become distracted
by comparing yourself with anyone else
or by fretting about anyone else’s suc-
cess. When you focus your attention
and abilities on doing worthwhile work
(especially when it benefits others),
you are well on your way to being your
best, and comparisons with anyone else
become completely beside the point. In
short: learn to accept yourself—and
don’t worry about anyone else.”
Motivators and Trading:
The healthy Motivator has some great
traits that are important in the profile
of a good trader. Because Motivators
are self-assured and believe in them-
selves, they will have the confidence
it takes to be a good trader. They are
ambitious, effective, and productive.
The unhealthy Motivator might find
themselves at the center of an “insider
trading” scandal because of their unethi-
cal behavior and the desire to succeed
at any cost.
Type Four: The Individualist:
The Expressive, Dramatic,
Self-Absorbed, Temperamental
Person
The basic desire of the Individualist is to
find themselves and their significance.
The secondary desire is to express their
individuality to themselves and others
through creative action. The basic fear
of the Four is that they have no identity
or personal significance. The second-
ary fear is of losing touch with their
inner self.

At the healthy level, they are inspired
and self-aware. The average Individual-
ist is temperamental and self-absorbed.
At the unhealthy level the Individualist
can be self-sabotaging and hopeless.
Examples: Rudolph Nureyev, Johnny
Depp, Bob Dylan, Joni Mitchell, Edgar
Allen Poe, Judy Garland, Michael Jack-
son, Tennesee Williams, Jeremy Irons,
J.D. Salinger, Ingmar Bergman, D.H.
Lawrence, Roy Orbison.
Riso and Hudson write:
“Characteristic Temptation: To over-
use their imaginations in the search for
self. Average to unhealthy Fours think
that they will find themselves and the
meaning of their feelings by retreating
into fantasies. But they only lose them-
selves in their imaginations. Rather
than deal with reality, they become
engrossed in fantasies, retreating into
an imaginary world where they give
themselves permission to feel and be
anything, thus wasting their time and
energies on illusions.”
“Cognitive error: To identify themselves
with their changing feelings and emo-
tional states, especially negative ones.
Since their feelings constantly change,
their identity does as well, undermining
many of their psychological needs.”
“Recommendation: Beware of the
harshness of your own self-talk. You
tend to say and do things to yourself
that you would never dream of saying
or doing to anyone else. Learn to notice
the inner voices of contempt and self-
rejection that you entertain. Cliché
though it is, become a friend to yourself.
Stand up for yourself and give yourself
a chance.”
Individualist and Trading:
Because of the creativity and individu-
alism of the Individualist, they do well
working on their own AND, they are
likely to come up with an innovative
system or way of doing things. They
Market Mastery
are very intuitive, which enables them
to see the big picture and possibilities.
They tend to be emotional, which means
the Individualist must guard against
making decisions impulsively or based
on their feelings.
Type Five: The Investigator
The Perceptive, Innovative, Se-
cretive, Isolated Person
The basic desire of The Investigator is
to be capable and competent: to have
something to contribute. The second-
ary desire is to master something and
to create a niche for themselves. The
basic fear of the Investigator is of being
helpless, useless or incapable. The sec-
ondary fear is that life will overwhelm
them.
At the healthy level, they are vision-
ary and pioneering. The average Five
is detached and preoccupied. At the
unhealthy level, the Investigator can be
eccentric and isolated.
Examples: Albert Einstein, Stephen
Hawking, Friedrich Nietzsche, Stanly
Kubrick, Emily Dickinson, Bill Gates,
Jean-Paul Sartre, James Joyce, Gary
Larson, David Lynch, Stephen King,
Tim Burton, Bobby Fischer, and Vin-
cent van Gogh.
Riso and Hudson write:
“Characteristic Temptation: To replace
direct experience with concepts. Aver-
age to unhealthy Fives literally ‘think
too much,’ in inappropriate categories
and circumstances. They are convinced
that by pondering everything they will
attain insight and thus be able to build
competence and confidence. If Fives
understand their environment, they
can master it—and therefore will be
able to defend themselves against it, if
necessary. However, as they abstract
from reality, average to unhealthy
Fives become increasingly lost in their
own thought processes until they lose
4 ©2004, IITM, All Rights Reserved
all perspective. Their intense focus on
their inner worlds leads them further
and further from grounded contact with
themselves and with reality. Excessive
conceptualizing is therefore the poten-
tial prelude to distortions of perception
and increasing failure of confidence.”
“Cognitive error: To think that they
can understand the world by seeing
themselves as a disconnected, ‘outside
observer.’ Whether or not they like
it, Fives participate in the world and
affect the subject of their own observa-
tions.”
“Recommendation: You have an enor-
mous capacity for understanding. Think
of ways to develop your compassion for
others, to understand what they are
going through from their point of view.
By using your insight into people with
compassion and caring, your own more
gentle feelings will emerge to soften
your hard edges. You will become
more trusting, relaxed, and happier if
you identify with other people rather
than standing back and observing them.
Do not only use your head—use more
of your heart: it will give purpose and
meaning to your knowledge and make
you a more fulfilled person.”
Investigators and Trading:
Because of the Investigators are highly
original thinkers, they are likely to cre-
ate a system of trading that has never
existed. They can be inspired visionar-
ies. Because they are interested in being
very competent, they might carve out
trading as a niche for themselves and
be an expert in the field.
Type Six: The Loyalist
The Engaging, Responsible,
Anxious, Suspicious Person
The basic desire of the Loyalist is to find
security and belong somewhere. The
secondary desire is to create security.
The basic fear of the Loyalist is of be-

ing unable to survive on their own and
having no support. The secondary fear
is of losing their security and sense of
belonging.
At the healthy level, they are coura-
geous and self-reliant. The average
Loyalist feels obligated and feels
pressured. At the unhealthy level, the
Loyalist can be clingingly dependent
and submissive.
Examples: Robert Kennedy, Malcom
X, George Bush, Walter Mondale, Tom
Hanks, Bruce Springsteen, Candice
Bergen, Gilda Radner, Princess Diana,
Julia Roberts, Phil Donahue, Jay Leno,
Johnny Carson, Diane Keaton, Woody
Allen, Andy Rooney, Jessica Lange,
Marilyn Monroe, Oliver North, Edgar
J. Hoover, Richard Nixon, Rush Lim-
baugh.
Riso and Hudson write:
“Characteristic Temptation: To rely
on others to help the Six become inde-
pendent. Sixes fundamentally want to
become independent, but their increas-
ing self-doubt leads them to feel that
they need more support. Caught in cy-
cles of indecision and second-guessing,
Sixes increasingly rely on friends, allies,
spouses, or pronouncements from books
or trusted authorities to reassure them
that they are making the right decision.
Despite occasional overcompensations,
average to unhealthy Sixes become
increasingly dependent on others or
on familiar beliefs and procedures for
emotional security. But by constantly
looking to other sources for support,
however reassuring in the short run,
Sixes undermine their self-confidence
in the long run.”
“Cognitive error: To look for guid-
ance and security outside themselves in
received knowledge, social structures,
and relationships. Sixes then must
constantly focus on evaluating the
truth or falsehood of external sources
of information rather than letting their
Market Mastery
minds become quiet so that their own
inner guidance can arise.”
“Recommendation: More of your issues
have to do with finding reliable sources
of guidance and support outside your-
self. It is good to remember that many
of these sources can be useful up to a
point, but none of them can provide the
kind of unwavering stability and unerr-
ing wisdom you want. Only your own
true nature can give you a deep sense
of solidity and capacity in the world,
because only the spontaneous intel-
ligence of your own soul can respond
to each unique situation freshly. So be
grateful for the many sources of support
in your life, but lean on them less. You
have within you everything you need
to move through life with dignity and
grace.”
Loyalist and Trading:
Unless the Loyalists operate at the
healthy level, they are likely to experi-
ence a lot of anxiety in relation to the
trading process. They would be afraid
to lose what they have and would not
sleep well at night knowing there is
a possibility of losing money in the
market. They would be more likely to
invest in something that is guaranteed,
even though they would make less
money. They would value security
above potential gain.
Type Seven: The Enthusiast
The Spontaneous, Versatile, Ac-
quisitive, Scattered Person
The basic desire of the Enthusiast is to
be satisfied and content, having their
needs fulfilled. The secondary desire is
to do those things that will ensure that
they will have what they need. The ba-
sic fear of the Enthusiast is of pain and
deprivation. The secondary fear is that
their freedom and happiness will be lost
and their needs will NOT be met.
At the healthy level, they are content
and free-spirited. The average Enthu-
5 ©2004, IITM, All Rights Reserved
siast seeks variety and is hyperactive.
At the unhealthy level, the Enthusiast
can be impulsive and reckless.
Examples: John F. Kennedy, Leonard
Bernstein, Steven Spielberg, Marianne
Williamson, Malcom Forbes, Elizabeth
Taylor, Mozart, Timothy Leary, Robin
Williams, Jim Carrey, Bette Midler,
Elton John, Liza Minelli, Bruce Willis,
Jack Nicholson, Joan Collins, Larry
King, Joan Rivers, Regis Philbin, How-
ard Stern, Liberace, John Belushi.
Riso and Hudson write:
“Characteristic Temptation: To think
that fulfillment is somewhere else.
Sevens are tempted to think that while
what they are doing is good, something
just around the corner might be better.
This can lead to the belief that more of
a good thing is better. However, as they
attempt to pursue options and acquire
more experiences or possessions, they
only increase the strength of their appe-
tites without really satisfying them. To
be satisfied requires that we be present
to the experience we are having. But the
restless search for variety, an for big-
ger, better, and more leads Sevens away
from presence, literally guaranteeing
that they will remain unsatisfied.”
“Cognitive error: To think that they
will achieve satisfaction and happiness
by anticipating the future rather than
maintaining contact with themselves
and with what is happening in the mo-
ment. Anticipation of the future takes
Sevens out of the immediacy of their
own experiences, thereby undermin-
ing the possibility of being satisfied by
them.”
“Recommendation: One of your highest
psychological and spiritual capacities
is for joy and for feeling intense grati-
tude for all that you have. Remember
to take time to be grateful and to allow
yourself to be enthralled by existence:
your sense of wonder at the beauty
and preciousness of life will lead you

into unexpected realms. Prepare to be
surprised.”
The Enthusiast and Trading:
A healthy Enthusiast is likely to be in-
terested in the benefits that come with
trading as well as the excitement of the
process. Because they are interested
in freedom, they would like the idea of
being an entrepreneur. The Enthusiast
has to guard against making impulsive
decisions, however.
Type Eight: The Leader
The Self-Confident, Deci-
sive, Willful, Confrontational
Person
The basic desire of the Leader is to be
in control of their own life and destiny.
The secondary desire is to prove their
strength through action or achievement.
The basic fear of the Eight is of being
harmed or controlled by others. The
secondary fear is of becoming weak
and vulnerable.
At the healthy level, they are heroic
and self-reliant. The average Leader
is dominating and intimidating. At the
unhealthy level, the Leader can be ruth-
less and destructive.
Examples: Martin Luther King, Jr.,
Donald Trump, Franklin Delano
Roosevelt, Lyndon Johnson, Mikhail
Gorbachev, Indira Gandhi, Kathleen
Turner, Marlon Brando, John Wayne,
Charlton Heston, Sean Connery, Ernest
Hemingway, Mike Wallace, Barbara
Walters, Frank Sinatra, Bette Davis,
Ann Richards, Ross Perot, Fidel Castro,
Saddam Hussein, Jim Jones.
Riso and Hudson write:
“Characteristic Temptation: “To think
that they are completely independent
and self-sufficient. Average to unhealthy
Eights want to be utterly autonomous
and independent of others so that they
will need no one, although, ironically,
they want to become so powerful and
Market Mastery
capable that everyone else will be
dependent on them. Of course, Eights
really do need people, but that need is
resisted to the degree that they believe
they have to be strong and in control of
their situation. Need is equated with
weakness, and this view sets the stage
for increasing emotional isolation, re-
sentment of others, and compensating
efforts to control everything.”
“Cognitive error: To identify them-
selves with their ability to assert
themselves independently of others.
This subtly leads Eights to feel that
they are constantly working against
something, whether it is nature, God,
other people, or a jar that will not open
easily. It also leads them to see their
own welfare as fundamentally unrelated
to the welfare of others.”
“Recommendations: Think of the harm
you can do to others; then think of the
good. By which do you want to be re-
membered?”
Leaders and Trading:
Healthy Leaders have the ability to be
strong, self-reliant and to run their own
system. They do not need anyone to
direct them, so they know what to do
and when to do it. They have a “can
do” approach and tend to be fearless.
One thing they need to guard against is
that they might not be willing to listen
to what others have to say and might
be overconfident. This type might tend
to learn some “expensive lessons,” but
ultimately are willing to be responsible
for their actions, for better or worse.
Their song: “I did it MY way.”
Type Nine: The Peacemaker
The Receptive, Reassuring,
Agreeable, and Complacent
Person
The basic desire of the Peacemaker
is to have inner stability and peace of
mind. The secondary desire is to cre-
ate and maintain peace and harmony
6 ©2004, IITM, All Rights Reserved
in their environment. The basic fear
of the Nine is of loss and separation.
The secondary fear is of losing their
peace of mind.
At the healthy level, they are inde-
pendent and relaxed. The average
Peacemaker is complacent and ap-
peasing. At the unhealthy level, the
Peacemaker can be shut down and
neglectful.
Examples: Abraham Lincoln, Joseph
Campbell. Carl Jung, Ronald Reagan,
Gerald Ford, Princess Grace of Mo-
naco, Walter Cronkite, Walt Disney,
George Lucas, Sophia Loren, Kevin
Costner, Keanu Reeves, Woody Har-
relson, Janet Jackson, Ron Howard,
Ringo Starr, Whoopi Goldberg, Nancy
Kerrigan, Linda Evans, Jim Henson.
Riso and Hudson write:
“Characteristic Temptation: To avoid
conflicts and self-assertion. For aver-
age Nines, directness, making their
desires known, or taking a strong posi-
tion feels like an aggressive act. Nines
believe that if they assert themselves,
they risk disrupting or even destroy-
ing the harmony that exists in their
relationships. Thus they begin to think
that by being conciliatory and sub-
ordinating themselves to others, they
can maintain their relationships and
their own emotional peace. Nines say
yes when they mean no, which avoids
conflicts in the short run, but which
leaves them angry when others choose
a course of action that Nines are not
comfortable with. Repressed anger is
the first step in creating the resistance,
depression, and dissociation that create
problems for Nines.”
“Cognitive error: To seek peace of
mind by diffusing their attention and by
disengaging from their instinctual en-
ergy. They become ‘unselfconscious,’
mistakenly thinking that their presence,
engagement, and input do not matter.”
”Recommendation: One of your great-
est assets is your receptivity to people:
 Market Mastery

others feel calm, safe, and accepted
around you. But they will love you
and seek you out even more if they
also feel that you understand them and
are attentive to their needs. Listen to
people carefully and get to know them
as they really are. The love you have
for them—and they for you—will be that
much more real and that much more
valuable.”
Peacemakers and Trading:
Because the Peacemakers are so inter-
ested in maintaining peace of mind,
they are going to be very careful what
they invest in. They would be more
likely to use a “buy and hold” strategy
so they can stay out of the loop of ups
and downs in the market.
Type One: The Reformer
The Principled, Purposeful,
Self-Controlled, Perfectionistic
Person
The basic desire of the Reformer is to
do the right thing with integrity and in
balance with everything. The second-
ary desire is to act in accordance with
their conscience and reason. The basic
fear of the Reformer is of being corrupt,
evil and defective. The secondary fear
is that their impulses will impair their
reason and lead them astray.
At the healthy level, they are wise and
noble. The average Reformer is driven
and rigid. At the unhealthy level, the
One can be inflexible and intolerant.
Examples: Pope John Paul II, Mahatma
Gandhi, Margaret Thatcher, Al Gore,
Bill Moyers, Katharine Hepburn, Har-
rison Ford, Ralph Nader, Sandra Day
O’Connor, William F. Buckley, Noam
Chomsky, George Bernard Shaw, Joan
of Arc.
Riso and Hudson write:
“Characteristic Temptation: An
extreme sense of personal moral ob-
ligation. Average Ones begin to think
that everything falls on them personally
to improve. Average Ones feel that if
they do not improve something, no one
else will. Or, even if others are willing,
they will not do as good and thorough
a job as the One will. Ones therefore
become increasingly fixated on orga-
nizing the environment, correcting and
perfecting everything, and on criticiz-
ing anyone or anything that does not
conform to the ideal as they define it.
“Cognitive error: To identify with their
Inner Critic (superego) as the judge
and determinant of what it means to be
good and in balance. This orientation
automatically leads to being judgmen-
tal and hence to a sense of separation,
dualism, reproach, and blame—and,
ironically, to a loss of integrity and
personal balance.”
“Recommendation: A person does not
have to be perfect to be good. Give
yourself the true satisfaction of becom-
ing human, not inhumanly perfect.”
Reformers and Trading:
Because the average Reformers tend
to be perfectionists and rigid, they
may find fault in every system. The
healthy Reformer, however, has over-
come the perfectionist tendencies and
is among the wisest of the personality
types because of their extraordinary
discernment. Their judgment is superb.
Healthy ones are mature and realistic;
they will not act rashly and will think
through their decisions maturely.
Conclusion
In conclusion, we have briefly looked at
the nine personality types of the Ennea-
gram. I have reviewed the basic desires
and basic fears of each type, along with
some descriptive adjectives ranging
from healthy to unhealthy mental states.
I quoted Don Riso and Russ Hudson’s
thoughts on each types characteristic
temptation and cognitive error, as well
as listed a recommendation for each
type. I also spelled out the implications
of each type as it relates to trading.
Ultimately, each personality types
has strengths and weaknesses. Once
those have been ascertained through
the Myers-Briggs and the Enneagram,
obviously, it is important to capitalize
on the strengths, but to also consider
the importance of doing inner transfor-
mational work on those areas that need
strengthening.

About the Author: Carol Adams, Ph.D.,
D.D., author of Voices of Selves, is the
Executive Director of the Academy of
Self-Knowledge. She is a highly skilled
presenter and educator, having taught
many years in the public school system.
She is a Master Practitioner of NLP
(Neuro-Linguistic Programming) and
specializes in Transformational Medi-
tation™, a process she has developed
and used successfully with hundreds
of students over the past ten years to
assist them in breaking through their
limitations.
Over the years, Dr. Adams has served
on the volunteer staffs of Tony Robbins,
Tad James, Ph.D., and Deepak Chopra,
M.D. and is currently serving as a
Provost at the University for Integra-
tive Learning, where she received her
Doctor of Divinity degree. Because
her specialty is personality type, she is
certified to administer and interpret the
Myers-Briggs Type Indicator (MBTI)
by the Association of Psychological
Type and is also a certified Don Riso-
Russ Hudson Enneagram teacher.
Yo u c a n v i s i t h e r w e b s i t e a t
www.academyofself-knowledge.com
to find out more about her work, book,
or products such as The Myers-Briggs
Type Indicator home study course and
video.

7 ©2004, IITM, All Rights Reserved

 Market Mastery

individuals. Now it is happening. Both

Bear Market Return?: ...
continued from page one Know Your System
my wife and my wife’s best friend have
seminar, everyone was enjoying happy ask me to train them as traders. Need I Software Reports are HERE
hour at the Embassy Suites. One of the say much more.
bartenders mentioned that he wanted to Comprehensive Trading Analysis &
attend our next seminar. The fact that Lastly, I was at the International Day Risk Report -
he was interested, despite knowing the Trading Expo in Ontario, California at the CUSTOMIZED
price, was rather interesting. However, end of September. Originally, there were This report is designed for those
the other bartender there said that he only 600 people enrolled. However, all traders who have already performed
knew more about the stock market than it took was a brief announcement about historical testing, or for those traders
any of the instructors in the seminar and the Expo on CNBC and that number more who have historical results (real trades
he could probably teach the workshop. than doubled. In addition, an large num- or paper trades) but do not have a way
That was incident number one. ber of extras showed up at the expo just
to attend the exhibits. Here thousands of to back test.
The second incident that occurred just people were staring at level II screens so You’ll Learn:
hours later was at a local sports bar. I they could learn the secrets of trading.
went to the bar to watch a football game, • What types of yearly gains
“Look how much Goldman is willing to might you expect?
only to notice that they were showing
bid for at this price. That’s probably him
three different games. Thus, I found • What types of drawdowns are
over there as well. Now, don’t you want
myself watching lots of commercials. expected?
Most football games have the typical this inside information as well.”
“Chevy Truck” and “Lite Beer” com- We also heard countless stories of • How many losses in a row are
mercials. However, about 20% of the $100,000 losses and gains from numer- normal?
commercials were for e-trade, ameri- ous every day people. McGraw Hill is • What range of winning trade
trade, and other online trading companies eager to publish my next book, which will percentages is normal?
and they had slogans like “because you be about day trading. In fact, even though
• What range of expectancies is
believe in yourself.” That was incident it hasn’t been written — they wanted it
normal?
number two. last week. A best of all “Day Trading for
Idiots” has now been published. If the • How robust is the system to
The third incident occurred about two
end of the bull market is not here now, it minor degradations?
hours later at a restaurant that evening.
might just come at the turn of the year. • How do you think about this as
My wife, Kala, Chuck LeBeau, and I
were having dinner and the waiter wanted Postscript: Our day trading book was a business?
to know about our workshop that we’d published when the day trading craze was
• Position Sizing Your System
just given. As soon as he heard it was already on the downside. This year our
about investing, he promptly announced new book, Safe Strategies for Financial • Based on your risk tolerance
that he was a great trader. He’d made Freedom will be published in June of and objectives.
179% in the market so far this year and 2004. However, this time our book is • How much should you risk per
he now had a $100,000 account. He written for the market we expect to see in trade?
also pointed out all the other people in the near future. And it’s written to help
the restaurant who were also involved in you stay safe. This 50+ page report is packed with
trading and what they were doing. It was data from your specific trading system
 and goals and it coaches you through
quite a large number. That was incident
number three. the thought processes of setting up and
monitoring your trading business.
I have had trouble seeing signs of a
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8 ©2004, IITM, All Rights Reserved