Personality traits of a good trader.
#1
Posted 30 June 2007 - 10:42 AM
#2
Posted 30 June 2007 - 10:57 AM
~ Johann Wolfgang Von Goethe ~
#3
Posted 30 June 2007 - 02:32 PM
I am a Consistent Winner because:
1. I objectively identify my edges.
2. I predefine the risk of every trade.
3. I completely accept the risk or I am willing to let go of the trade.
4. I act on my edges without reservation or hesitation.
5. I pay myself as the market makes money available to me.
6. I continually monitor my susceptiblility for making errors.
7. I understand the absolute necessity of these principles of consistent success and, therefore, I never violate them.
"In order to master the markets, you must first master yourself" ... JP Morgan
"Most people lose money because they cannot admit they are wrong"... Martin Armstrong
http://marketvisions.blogspot.com/
#4
Posted 30 June 2007 - 02:50 PM
#5
Posted 30 June 2007 - 02:52 PM
~ Johann Wolfgang Von Goethe ~
#6
Posted 30 June 2007 - 03:14 PM
"If you've heard this story before, don't stop me because I'd like to hear it again," Groucho Marx (on market history?).
“I've learned in options trading simple is best and the obvious is often the most elusive to recognize.”
"The god of trading rewards persistence, experience and discipline, and absolutely nothing else."
#7
Posted 30 June 2007 - 04:09 PM
How can you love something and be in for the money and not be personally satisfied with what you do?
Trading is a job, you have to be good at your job to succeed and to be better at your job, you need to enjoy and love your job. Every job has its intense moments such as the fun, satisfying results as well as the bitter, heartbreaking failures. They are all part of the job, it is OK to feel the pain or be happy with your gains because trading is just another job...
So, typically a trader would be probably as successful in other types of work as in trading, because he will have the self restraint to accept the mistakes, competitiveness to come back, discipline to be persistent and ability to improve his knowledge and experience...
Plot all of your trades on a chart and see what you did, what worked and where you screwed up. The education is important, but experience is usually more important in life, I have never been able to use anything in trading that I learned by talking to other people or reading the books until I applied and understood myself what it is. The goal of learning is to prepare you to the real world, but the real world is not an ideal place as in the text books...
BTW, you don't have to loose money to learn, that's what the backtesting is for, nobody will let you do open heart surgery in the first year of the medical school, but for some reason (!) everyone is allowed to trade without a trading plan and understanding of basic accounting and risk management...
In my experience, you can not really tell you know what you are doing unless you study at least a 4-5 different approaches and examine the trades of these approaches will take on a few hundred historical cases AND different markets. You will be surprised about what you think it will happen vs what really happened...
- kisa
Making money is personally satisfying but you can't put other things in front of that. You have to be in it for the money because first and foremost that is the name of the game. I love the game and the game is making money.
#8
Posted 30 June 2007 - 06:30 PM
If you feel positive about your job, you will be mentally ready at a minimum to keep up with the task in order to overcome the psychological obstacles...
It is more positive to think of trading as a negotiation than a fight. Even the worst criminals will agree on something...
#9
Posted 01 July 2007 - 08:35 AM
#10
Posted 01 July 2007 - 09:19 AM
"Our life is frittered away by detail. Simplify, simplify."
- Henry David Thoreau, market wizard.
Certainly agree.
The best traits a trader can have are to be (1) logical, and (2) disciplined.
FWIW... I don't believe in the concept of "edge". The only actual edges I ever heard about are illegal... "front-running" and trading on insider information.