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Most Important Qualifications for a Successful Trader

  
  Education
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qualifications1I believe that one of the most important qualifications for a successful trader is “POISE”, which to me is defined as stability, a well balanced person with dignity of manner – as it relates to the stock market.
A poised person is a person who can handle their hopes and their fears in a calm manner.

The other qualification is “PATIENCE” to wait for the opportune time, when as many factors as possible are positioned in the traders favor.
Poise and patience are the close friends of successful traders.

The final qualification is “SILENT”. Keep your own silent counsel – keep your victories and your failures to yourself – learn from them both.

Poise, patience and silence are attributes that must be cultivated.
These virtues do not come automatically to the stock market trader.

Essential Qualities of the Speculator

  
  Education
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1. Self-Reliance. A man must think for himself,
must follow his own convictions. George
MacDonald says: “A man cannot have another
man’s ideas any more than he can another
man’s soul or another man’s body.” Self-trust
is the foundation of successful effort.

2. Judgment. That equipoise, that nice
adjustment of the faculties one to the other,
which is called good judgment, is an essential
to the speculator.

3. Courage. That is, confidence to act on the
decisions of the mind. In speculation there is
value in Mirabeau’s dictum: “Be bold, still be
bold; always be bold.” (more…)

Here's The Legendary Interview Where Martin Zweig Calls The 1987 Crash 3 Days Before It Happened

  
Education, Video
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According to Bloomberg, famous stock market pundit Martin Zweig has passed away.

Zweig (who was either 70 or 71) was a technical analyst, newsletter writer, and money manager, who famously called the crash of 1987 3 days before it happened.

In an interview on Louis Rukeyser’s Wall Street Week on October 16, 1987, Zweig predicted a short violent drop in the market that would be reminiscent of 1929.

Here’s the video. The whole thing is worth watching, but Zweig starts his call at the 6:44 mark.

How can you enhance perceived self efficacy

  
  Education
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Self efficacy is built through four processes:
Mastery experience
Role modelling
verbal persuasion
psychological cues.
These four are in order of importance. Most critical way to build self efficacy is through a mastery experience.

Mastery experience is basically a successful experience of mastering a task. Mastery experiences happen when the learner has reached the point where they understand the content knowledge enough to perform a task on their own or masters the task. It happens if the learner goes in to sufficient depth on material he trying to learn. It happens as a result of immersion in a particular field or task. It happens with plenty of prior exposure to the content.

At some stage the learners are able to interpret the results of their actions and use those results to develop their own capability to engage in future actions or tasks. Then the learner become auto learners. They are able to participate in tasks on a first hand basis with little or no assistance from outside influences. When you experience a intense mastery experience you get a feedback on your own capabilities. Long and sustained efforts are required for mastery experience.  (more…)

The Best Obituary I’ve Read

  
  Education
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The best obituary I’ve read recently was of Kerry Packer the Australian news magnate and consummate gambler, who makes the sage and the palindrome look like angels, whose private plane was purposely grounded with “mechanical failure” for two hours after he won 10 big at bacarat, with Wynn knowing that Kerry would rush back to the casino to play some more and lose the 10 in the two hours et al.

Kerry was downed in a polo game and was clinically dead for 8 minutes, and revived. When he woke up he said, “the one thing I can tell you for sure is there is no Devil below”.

Chimpanzees Are Like Stock Traders — They Take Gambles

  
  Education
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Humans aren’t the only gamblers in the animal kingdom.

 Our closest primate relatives, chimpanzees and bonobos, demonstrate behaviors considered basic to human economics such as delaying gratification and assessing risk, according to new research published Wednesday May 29 in the journal PLoS One.

Though they don’t bet on stock exchanges or casinos, they also have strong emotional reactions to games of chance — like when they are betting on food showing up. They don’t like losing or waiting for payouts, and can even correct their own behaviors based on successes or failures.

“Apes are also experiencing rich emotional reactions in an economic context,” study researcher Alexandra Rosati, of Yale University, said in a statement. “They are making decisions about their most valuable resource, which is food.”

“Even though economists can be quite puzzled about human behavior and what it means, biology suggests that these economic biases have their roots in non-human foraging behaviors,” Rosati said. (more…)

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