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You Should Have 11 Qualities to become Successful Trader

  
  Education
  1. Expect long hours of study and research. Assume you will lose money in the beginning.
  2. A person interested in becoming a trader must have the mindset of an entrepreneur. Risk, irregular income, and spending money to make money, are all part of the business.
  3. You must trade like a business person and not a gambler. Gamblers need not apply; go to Vegas instead.
  4. Risk management will be your priority. Too much risk exposure will eventually lead you to be an unemployed trader with no trading capital.
  5. You are your own human resource department. Be prepared to manage your own greed and fear.
  6. To keep your morale up, you must keep all your losses small, and allow your winning trades to be as large as possible.
  7. You must have enough trading capital. The minimum is Rs 1000000 (We see 10 lac to 25 lac )in risk capital to trade for a comfortable living. Small trading accounts are eaten up by percentage commissions and end up being unprofitable. When trading for a living, you must be able to live off your returns and not touch your initial trading principle.
  8. Jesse Livermore’s quote for potential candidates: “The game of speculation is the most uniformly fascinating game in the world. But it is not a game for the stupid, the mentally lazy, the person of inferior emotional balance, or the get-rich-quick adventurer. They will die poor.”
  9. Avoid Watching Blue Channels -101% Just switch off ,Look at Chart…Nothing else.
  10. Avoid Fundamentals ,Results ,Economy Numbers……etc etc.
  11. Every Data ,Every Result is leaked and Every NEWS too with few people-If u can get or have source + chart Idea then nobody can beat u.

Core Philosophy

  
  Education
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“The essential element is having a core philosophy. Without a core philosophy you’re not going to be able to hold on to your positions or stick with your trading plan during really difficult times. You must fully understand, strongly believe in, and be totally committed to your trading philosophy.”

– Richard Driehaus

 How does one confirm an effective core philosophy? Here is one simple test. Imagine a wealthy businessman — a friend of the family perhaps — will give you $5 million to manage upon reasonable convincing, over the course of a light lunch, that you have a viable strategy for profiting in markets.

Without notes or power point, could you sell this person on your methodology, explaining in plain English what it is and why it works?  Could you confidently defend against devil’s advocate criticisms?

If the honest answer is “no,” work hard on making it “yes” and your core philosophy will emerge…

Positive words carry less information than negative words

  
Analysis, Education
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Intriguing new paper showing the higher signal in negative words.

Positive words carry less information than negative words

We show that the frequency of word use is not only determined by the word length [1] and the average information content [2], but also by its emotional content.We have analysed three established lexica of affective word usage in English, German, and Spanish, to verify that these lexica have a neutral, unbiased, emotional content. Taking into account the frequency of word usage, we find that words with a positive emotional content are more frequently used. This lends support to Pollyanna hypothesis [3] that there should be a positive bias in human expression. We also find that negative words contain more information than positive words, as the informativeness of a word increases uniformly with its valence decrease. Our findings support earlier conjectures about (i) the relation between word frequency and information content, and (ii) the impact of positive emotions on communication and social links.

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