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9 things know yourself in order to obtain success in trading

  • An aspiring trader has to understand what her/his hook is and construct her/his style of negotiation around this hook. Ask yourself some questions and determine what about the markets attracts you to it.
  • Do you like the adrenaline and the emotion of the competition? Or do you prefer a more controlled form of making decisions?
  • Are you more academic and inclined to perform investigations of the market? Or do you feel more comfortable trusting your instincts and intuition?
  • Are you set by defined rules and prefer to use a calculator? Or are you more qualitative in making your decisions?
  • Are you interested in international matters?
  • Are you interested in the ins and outs of individual companies? Or are you interested in economic theory?
  • What is it that you want from trading, to be the next George Soros? Do you want the liberty of working from home? Do want an additional source of income and profit?
  • Responding to these questions will help you easily in defining what type of trader you will become.
  • To determine what motivates you in the markets. But this is just the beginning. Once you know what motivates you, you can begin to determine the type of markets in which you should operate, the trading profile that you should adopt, and the additional preparation so that your trading will go further than just the basics. This is the best way to become a successful trader, the comprehension of the markets, the strategy, and the profile that best adjusts for you, by this manner you will maximize your profitability.

Tip from a billionaire: going to the bathroom wastes too much time

Michael Bloomberg has handed out some tips on his formula for success:

  • You make your own luck
  • The harder you work, the luckier you get
  • Try to be the first one in in the morning and the last one to leave at night
  • Take the fewest vacations
  • Take the least time away from the desk to go to the bathroom or have lunch

DAVID TEPPER: If You Invested $1 Million In My Hedge Fund In 1993 You Would Have $149 Million Today

David Tepper, who has been running distressed debt hedge fund Appaloosa Management for the past twenty years, is crushing it this year. 

 Meanwhile, the S&P is up about 19.7% this year. 

Tepper was up 5.5% in July net of fees. 

He’s still bullish on stocks.

He told Wapner that he finds them “reasonable” and that he’s still long.   (more…)

OverTrading

Overtrading is also the result of improper trade preparation. It’s difficult to overtrade when you begin the day fully prepared. Trade what you see not what you hear or feel during the day. Plan your trades and trade your plan. Prior planning can prevent and severely limit these problems. Overtrading as I see it is the essence of trading frustration. Trying to “catch” a good trade regardless of risk involved is the ultimate in trading suicide. Overtrading will greatly reduce your probability of success because you are trading without a plan.