1) The amount of time spent on their trading outside of trading hours (preparation, reading, etc.);
2) Dedicated periods to reviewing trading performance and making adjustments to shifting market conditions;
3) The ability to stop trading when not trading well to institute reviews and when conviction is lacking;
4) The ability to become more aggressive and risk taking when trading well and with conviction;
5) A keen awareness of risk management in the sizing of positions and in daily, weekly, and monthly loss limits, as well as loss limits per position;
6) Ongoing ability to learn new skills, markets, and strategies;
7) Distinctive ways of viewing and following markets that leverage their skills;
8) Persistence and emotional resilience: the ability to keep going in the face of setback;
9) Competitiveness: a relentless drive for self-improvement;
10) Balance: sources of well-being outside of trading that help sustain energy and focus.
Archives of “emotional resilience” tag
rssTen Characteristics I See Among Successful Traders
There’s no one formula for trading success, but there are a few common denominators that I’ve tracked in my years of working with traders:
1) The amount of time spent on their trading outside of trading hours (preparation, reading, etc.);
2) Dedicated periods to reviewing trading performance and making adjustments to shifting market conditions;
3) The ability to stop trading when not trading well to institute reviews and when conviction is lacking;
4) The ability to become more aggressive and risk taking when trading well and with conviction;
5) A keen awareness of risk management in the sizing of positions and in daily, weekly, and monthly loss limits, as well as loss limits per position; (more…)
101% U all Should Buy this Book and 101% u should read…………..!!
Just completed reading this Book (Already read 3 times and everytime …..Something NEW…..I learn )
Here are 10 Lessons from the Book :
1. The Process and the Practice: “Confidence doesn’t come from being right all the time: it comes from surviving the many occasions of being wrong” (27).
2. Stress and Distress: “Thinking positively or negatively about performance outcomes interfere with the process of performing. When you focus on the doing, the outcomes take care of themselves” (56).
3. Psychological Well-Being: “We can recognize the happy trader because he is immersed in the process of trading and finds fulfillment from the process even when markets are not open” (72).
4. Steps Toward Self-Improvement: “Your trading strengths can be found in the patterns that repeat across successful trades” (105).
5. Breaking Old Patterns: “Many trading problems are the result of acting out personal dramas in markets” (133)
6. Remapping the Mind: “When we change the lenses through which we view events, we change our responses to those events” (168)
7. Learn New Action Patterns: “Find experienced traders who will not be shy in telling you when you are making mistakes. In their lessons, you will learn to teach yourself” (203)
8. Coaching Your Trading Business: “Long before you seek to trade for a living, you should work at trading competence: just breaking even after costs” (230)
9. Lessons From Trading Professionals: “If you don’t trust yourself or your methods, you will not find the emotional resilience to weather periods of loss” (267)
10. Looking For the Edge: “The simplest [trading] patterns will tend to be the most robust” (311).
And a final admonition: “Know what you do best. Build on strengths. Never stop working on yourself. Never stop improving. Every so often, upset the apple cart and pursue wholly new challenges. The enemy of greatness is not evil; it’s mediocrity. Don’t settle for mediocre” (341).
Technically Yours
Anirudh Sethi/Baroda
Five Qualities For Successful Trader
- Capacity for Prudent Risk-taking.The young successful trader is not afraid to go after markets aggressively when the opportunity presents itself.
- Capacity for Rule Governance. The young successful trader has the self-control to follow rules in the heat of battle, such as rules of position sizing and risk management.
- Capacity for Sustained Effort.The trader uses productive time to do research, preparation, work on himself, outside of market hours.
- Capacity for Emotional Resilience. All young traders will lose money early in their development and experience multiple frustrations. The successful ones will not lose self-confidence and motivation in the face of loss and frustrations.
- Capacity for Sound reasoning. The successful young trader exhibits an ability to synthesize data and generate market and trading scenarios.
Words of Wisdom from Colm O’Shea
In “Hedge Fund Market Wizards”, Jack Schwager interviews Colm O’Shea of Comac Capital. There are some great quotes in the interview and here are some of my favourites:
You need to implement a trade in a way that limits your losses when you are wrong, and you also need to be able to recognize when a trade is wrong.
… what strikes me about really good managers (is that) they don’t get attached to their ideas.
You need a method that suits your personality.
People who like trading because they like gambling are always going to be terrible at it. For these people, the trading books could be greatly shortened to the message: “Don’t trade. You are really bad at this. So just don’t do it.”
Traders who are successful over the long run adapt. If they do use rules, and you meet them 10 years later, they will have broken those rules. Why? Because the world has changed. (more…)
GEMS from :The Daily Trading Coach
The Daily Trading Coach covers just about any psychology or behavioral issue the trader may face. I cannot help but recommend it. There are 101 lessons here divided into 10 chapters. Let’s dig into each chapter and uncover a gem within.
Today again completed reading this Book…Yes 5th time !!
1. The Process and the Practice: “Confidence doesna’t come from being right all the time: it comes from surviving the many occasions of being wrong” (27).
2. Stress and Distress: “Thinking positively or negatively about performance outcomes interfere with the process of performing. When you focus on the doing, the outcomes take care of themselves” (56).
3. Psychological Well-Being: “We can recognize the happy trader because he is immersed in the process of trading and finds fulfillment from the process even when markets are not open” (72).
4. Steps Toward Self-Improvement: “Your trading strengths can be found in the patterns that repeat across successful trades” (105).
5. Breaking Old Patterns: “Many trading problems are the result of acting out personal dramas in markets” (133)
6. Remapping the Mind: “When we change the lenses through which we view events, we change our responses to those events” (168)
7. Learn New Action Patterns: “Find experienced traders who will not be shy in telling you when you are making mistakes. In their lessons, you will learn to teach yourself” (203)
8. Coaching Your Trading Business: “Long before you seek to trade for a living, you should work at trading competence: just breaking even after costs” (230)
9. Lessons From Trading Professionals: “If you don’t trust yourself or your methods, you will not find the emotional resilience to weather periods of loss” (267)
10. Looking For the Edge: “The simplest [trading] patterns will tend to be the most robust” (311).
And a final admonition: “Know what you do best. Build on strengths. Never stop working on yourself. Never stop improving. Every so often, upset the apple cart and pursue wholly new challenges. The enemy of greatness is not evil; it’s mediocrity. Don’t settle for mediocre” (341).
Five qualities for Successful Traders
- 1)Capacity for Prudent Risk-taking.The young successful trader is not afraid to go after markets aggressively when the opportunity presents itself.
- 2)Capacity for Rule Governance. The young successful trader has the self-control to follow rules in the heat of battle, such as rules of position sizing and risk management.
- 3)Capacity for Sustained Effort.The trader uses productive time to do research, preparation, work on himself, outside of market hours.
- 4)Capacity for Emotional Resilience. All young traders will lose money early in their development and experience multiple frustrations. The successful ones will not lose self-confidence and motivation in the face of loss and frustrations.
5)Capacity for Sound reasoning. The successful young trader exhibits an ability to synthesize data and generate market and trading scenarios.