One of the great challenges of trading is that it requires intense and singular concentration on markets, but also an equal focus on one’s performance in those markets. That combination of market awareness and self-awareness enables traders to make the most of their “edges” in markets while also cultivating fresh sources of edge.
It is interesting that very successful traders usually don’t achieve monetary success and then walk away from markets. That is because what drives them is not just the outcome, but also the process: the ongoing challenges of market mastery and self-mastery. Even after the money has been made, the game retains its appeal.
If your motivation is primarily to make money, you probably won’t get to the point of career success, because the inevitable periods of drawdown will sap whatever drive is present. When the motivation is mastery, losing periods provide fuel for reflection, learning, and improvement.
Archives of “Megafauna” tag
rss10 Types of Trading Animals:Which Are You?
The Bear- This trading animal believes the market will be going down and plays the short side. Bears think that a market is going to be very red.
The Bull- This trading animal is very optimistic that the market will be green. Bulls love to buy and believe their screen will be full of green.
The Whale- This trading animal can move prices when it buys and sells. The whale has to faze into positions and out of them so it does not make big enough waves to attract piggy backers. A lot of money can be made trading along side the right whale.
The Pig- This trading animal likes to trade big and often. The problem is that the pig does not know how to exit a winning trade he usually has too big of a target, too big of a position size, and too big of a time frame.
The Shark- This trading animal is just about making money, it gets into trades, makes money and gets out. It has little interest in big complicated theories or esoteric methods. The shark keeps it simple it makes money then moves on to the next opportunity. (more…)