22 replies to this topic

[securelstmile]

Cap gave us the bits of wisdom but I was thinking that there is actually a set of personality traits that make you a better trader. This is what I have come up with. 1. Someone who is open to new ideas and willing to consider that there are experts out there that know what he/she does not know. You read and study and take it all in. In short, someone who is willing to learn. 2. This goes with number 1. Someone who challenges new ideas and does not accept other ideas blindly. Someone who looks for proof, can see BS from true expertise. In the end you make your own decision and take responsibility for that decision. 3. Someone who knows himself/herself. You know what you are good at and what your aren't. You know what time frame or method that fits your personality. 4. Someone who is patient. You don't just trade to trade, you wait for your trade. If you know you are right and the situation is the same you give it some room. 5. This goes with number 4. Someone who is willing to change their mind in an instant if the situation changes. Support is broken, the cfo leaves, whatever it is, you have your line in the sand and you turn on a dime if need be. 6. Someone who is a bit rebellious. You don't care what people think of you, in the end you are in it for the money. You are not here for personal satisfaction you get that in your everyday life, trading is to make money and it doesn't matter what anyone thinks about what you think. 7. This goes with number 6. Someone who can see the bigger picture beyond themselves. You are unselfish, and open, you want to see others succeed and the world to be a better place. You just love success and are not jealous if someone else is good at this. You actually seek people out who are successful and join them rather than give in to petty discussion of right or wrong. 8. Someone who is tenacious. You are a fighter, you are competitive and enjoy the feeling of winning. 9. Someone who is bit obssessive, you can live and breathe this stuff, but not because you have to, you just love it. Well this is what I came up with, feel free to add to it.

[Sentient Being]

If I ever become a good trader, I'll get back to you on this!

[Russ]

Trading in the Zone by Mark Douglas:

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.

[arbman]

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

[Sentient Being]

Russ, I've read the zone, I loved it. I'm once again, working on "my edge". I've come to some conclusions....like good traders do have an edge, and they don't share it or it wouldn't be an edge.

[diogenes227]

"Our life is frittered away by detail. Simplify, simplify." - Henry David Thoreau, market wizard.

[securelstmile]

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.

[arbman]

Every job is about making money, otherwise they are called charity work or hobby!

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...

[securelstmile]

I disagree. Being a doctor is a job where saving the patient is the priority. Being a lawyer is a job where winning at trial is the priority. I'll leave it at that. Lets agree to disagree. I am not here to win arguments. This was not set up as a post to be argumentative but to discuss the personality traits of good traders. It helps me to identify those traits. It helps me make money.

[HoseB]

"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.