1)  The psychological model – What makes great traders, this model  asserts, is self-mastery.  Great traders don’t necessarily possess  better trading methods or secrets, but apply common wisdom more  consistently, with less emotional interference, and therefore with  better risk management.  Developing trading expertise is a function of  developing oneself in this model.  

 2)  The scientific model – What makes great traders according to this  model is superior research.  Markets exhibit cause-effect  relationships, and these relationships shift over time.  The role of  research is to uncover these patterns and capitalize upon them.  Such  a model is, in a sense, the opposite of the psychological model.  It  hypothesizes that, once you discover inefficiencies in the  marketplace, these can be incorporated into mechanical systems that  eliminate any troublesome human elements from trading.   (more…)