What makes an expert? And how can traders develop their own expertise? Three elements:
1) “Measures of general basic capacities do not predict success in a domain”
Experts cannot be distinguished by superior intellects or other cognitive talents.2) “The superior performance of experts is often very domain specific and transfer outside their narrow area of expertise is surprisingly limited”
Being an expert in one domain does not predict expertise in others; a person can be a highly accomplished trader, but not expert in other areas. Think “niche” — the successful trader has found a particular sphere of success that expresses his skills and interests.
3) “Systematic differences between experts and less proficient individuals nearly always reflect attributes acquired by the experts during their lengthy training”
The expert is one who has undergone a structured, deliberate process of training that builds competencies, offers extensive feedback, and draws upon intensive effort over time to internalize knowledge and skills. (more…)
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What makes an expert? And how can traders develop their own expertise? Three elements:Most Important Qualifications for a Successful Trader
I 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.
Market Gravitates or We Spot those LEVELS…. Mystery !!
Here in this very space we have written Y’day and updated today intra-day too: @ 9106 wrote to Sell CNX Bank INDEX on any Rise. It would tumble to 8719 level very shortly. Bang on… just in 48 hrs it collapsed to exactly our level, precisely 8715, a whooping fall of 400 points.
In the same breathe you were forewarned that for NF not crossing 5165-68 would weaken it to 4994 – 4970 levels. Exactly from 5168 of y’day it has nosedived uptill 5017.
These are indices: Non-manipulatable, Non-influential. How did it happen, who did it, can there be any attributes at all !!!! Its our ever dependable charts, Analytical skills and wisdom of Insight. Collectively Technical Analysis. Just Pure Intelligence.
Yesterday I written about Bank stocks…Just click here
Read Yesterday’s Guesstimates
Many Traders had asked about MTNL…..and they say I don’t about failure calls.First of all about MTNL….Technically was /still looking hot …But I had written many times never act blindly in market and always consider price as Father of stock/Commodity.
-Now click here and see…the reason ..Why MTNL had crashed in yesterday’s trade.
Now about Failure calls.If I recommend any stock or do analysis then I always write Support/Resistance levels. (more…)
Trading Expert
What makes an expert? And how can traders develop their own expertise? Three elements:
1) “Measures of general basic capacities do not predict success in a domain”
Experts cannot be distinguished by superior intellects or other cognitive talents.2) “The superior performance of experts is often very domain specific and transfer outside their narrow area of expertise is surprisingly limited”
Being an expert in one domain does not predict expertise in others; a person can be a highly accomplished trader, but not expert in other areas. Think “niche” — the successful trader has found a particular sphere of success that expresses his skills and interests.
3) “Systematic differences between experts and less proficient individuals nearly always reflect attributes acquired by the experts during their lengthy training”
The expert is one who has undergone a structured, deliberate process of training that builds competencies, offers extensive feedback, and draws upon intensive effort over time to internalize knowledge and skills.
So what might this mean? Here are the good conclusions:
1) The majority of traders are looking for expertise in all (more…)
What makes an expert? And how can traders develop their own expertise? Three elements:Keep Your EGO out of Trading.
“Of all the traps and pitfalls in life ,self-disesteem is the deadliest ,adnd the hardest to overcome;for it is a pit designed and dug by our owen hands ,summed up in the phrase ,’It’s no use-I can’t do it .'” -Maxwell Maltz
The ego had no place in trading.An unstable ego will attach itself to anything you do.And trading is not exception.You cannot use the trading arena as an area to prove your worth or your capability.It will just bring your trading and your self-esteem to new lows.
If your ego is getting in the way of your trading,you need to build up your self-esteem.One way to do this to begain to appreciate yourself.Pay attention to what you’re doing that’s good.Give yourself recognisation for the little things you do as you go through the day.Make lists of your accomplishments.Make lists of your positive attributes.Each day ask yourself ,”What did I today that I’m proud of ?”Ask yourself ,”In what way an I improving ? “
The Complete Turtletrader by Michael Covel
Book summary:
The famous turtle program was the fruit of the debate between Richard Dennis and William Eckhardt, on the issue of whether traders are can be nurtured. Dennis believed it can but Eckhardt thought otherwise. Hence, they decided to make a bet by recruiting people from diverse background and most without experience. The book covered the entire story of the turltes, from the beginning of the program to what happened after the program. Instead of summarizing the process of how the turtles were hired etc, I will only focus on the information and attributes that makes one a good trader which I picked up from the book. In addition, I will introduce the turtle trading method.
What makes a successful trader?
Courageous probability trader
A successful trader thinks in terms of odds and always enjoys playing the game of chance. He or she will experience losses but must be able to hold the nerves and keep trading like they have yet lost. Richard Dennis was $10mil down in a single day but was able to finish off with a $80mil profit for the year. Something that makes “mere mortals lose sleep”. It was said that great traders like Dennis, process information differently from majority of the investors. He does not take conventional wisdom for granted or accept anything at face value. “He knew that traders had a tendency to self-destruct. The battle with self was where he focused his energies.” During the interviews with the potential turtles, one of the abilities he was looking for was “to suspend your belief in reality”.
“Great training alone was not enough to win for the long run. In the end, a persistent drive for winning combined with a healthy dose of courage would be mandatory for Dennis’s students’ long-term survival.”
Eckhardt emphasized that they are not mean reversion traders who believe the market will always return to the mean or fluctuate around the mean. Dennis and co. believe the market trends and often come unexpected, which also means the payout will be very rewarding.
Emotionless and disciplined
Dennis taught the turtles not to think trading in terms of money so they can detach themselves from it and no matter what their account size, they would still be able to make the correct trading decisions.
The turtles were taught to be trend followers where they used a system of rules to tell them the bet size, entry and exit points. Rules “worked best” as they eliminate human judgements which do not work well in the market. That being said, even if rules are followed religiously, traders are not expected to be right all the time and it is crucial that they cut their losses and move on when they are wrong. It is important to make every trade a good trade rather than a profitable trade. As long as good trades are made, profits will come in the long run. (more…)
16 Points for Day Traders
Accepting risk may cause losses, but accepting unfunded liabilities and negative skew can bankrupt us. Use models not to predict, but to create a range of possible outcomes for which we can plan. Markets follow cycles based on the perceptions and actions of its players, and one can gain alpha by using these cycles to manage risk and reward. Markets SEEK efficiency, but offer tremendous opportunities while traveling from inefficiency to efficiency. Both people and machines have flaws, so use the best attributes of each for peak performance. Forecasting is necessary but should be timid in nature, while action is not always necessary but should be BOLD on the occasions when conditions dictate it. Risk management is made more complete by searching for information that differs from your analysis rather than by that which confirms it. Successful practitioners turn mistakes into assets by generating learning experiences and continuous improvement. Remember to distinguish between clues that are necessary, vs. a complete picture revealing a group of necessary AND sufficient measures. Markets can be generally explained 95% of the time, but extreme events happen much more than a bell curve would indicate…using options guarantees that we’ll survive fat tails and grab positive skew. We are certain we DON’T know what will happen, so the best approach is to figure out what WON’T happen and blueprint accordingly. Diversification reduces risk most of the time, but we assume all assets are linked and eventually correlate. It is critical to have both a brain and a gut; the ability to find an edge, and the fortitude to trade it aggressively. Profitable opportunities are best entered in the earliest stage of latent power being converted to energy. Too soon is a waste of capital, too late involves too much risk. Virtually all long-term strategies are positioned to simply ride the tailwinds of rising prices. It is imperative to have methods to protect us from both headwinds and crosswinds to avert disaster. Treat volatility as a psychological risk to be managed into an ally, not as a financial measure of risk to obsess over. |
10 Attributes Exceptional Traders possess
- A persistent unquenchable motivation to compete and achieve personal stock market mastery
- A personally developed hands-on strategy in writing that fits your personality.
- The ability to be brutally honest and objective about your beliefs and weaknesses.
- An inner resiliency to weather all market storms with little emotional scar tissue.
- Well-defined risk management rules and an ability to accept responsibility for losses.
- Unassailable confidence in your system and yourself.
- Discipline to follow your methodology and act decisively.
- A strong ethic for working hard but also working smart.
- Patience and an ability to wait for high probability trades to materialize.
- A willingness to embrace change, to modify your thinking, to rewrite your methodology and transform yourself.
Most Important Qualifications for a Successful Trader
I 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.
Important Qualifications for a Successful Trader
I 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.