Archives of “short lived success” tag

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Warren Buffett Teaches : Part – I

  
  Education
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Buffet learned how to involve in high probably investments since high-school. Back in those years, he and one of his friends bought a reconditioned pinball machine for $25. They put the game in a barber shop. They checked the coin box at the end of the first day and found $4. “I figured I had discovered the wheel,” says Buffet. Eventually the pinball business was netting $50 per week. By the time Warren graduated high school, he is an owner of a small farm in Nebraska and has $9,000 in his bank account (more…)

Sun TZU and Trading

  
  Education
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As a trader you must have three pieces working in synch. Your equipment, your trading tools, and your mind. The Art of War by Sun Tzu is a book that has been applied to every facet of human experience. While originally meant to be a book that taught war strategies the lessons it imparts can and will change your life. (more…)

Typical Traids of Top Traders

  
  Education
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First, let me say that I know of examples of successful trader’s that don’t have each of the characteristics that I would say the “typical” good trader shares. So there are exceptions to each of these. (more…)

Typical Traits Of Top Traders

  
  Education
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Temperament – In general, people with more analytical and even tempered personalities make better traders.

There is a counterbalancing trait which is the willingness to take risks. Some traders with volatile temperaments are successful because they can take risks easily and can keep trading after getting knocked down. They also tend to blow up more often.

Character – Humility is a very important ingredient in trading success. The truth does not care what you think of yourself. The markets don’t care what you want to believe reality is. Trader’s that are humble are better able to examine their methods and trading objectively and make changes where appropriate.

I’ve known a lot of successful traders that most people might consider arrogant but when it comes down to their own success and the reasons for that success they were able to see the faults in themselves and their trading. The trader’s that were out of touch with reality tended to blow up and have short-lived success.

Intelligence – General intelligence is correlated with success but not as highly as you might think. The ability to discern patterns and relationships with limited information is very useful.

I’d say that you need to be relatively smart to be successful but not extremely smart. Smart enough to understand the principles but beyond that it doesn’t necessarily help you. I’ve seen many very smart people tie themselves up in knots by second-guessing themselves.

Social Skills – Most of the really successful traders are not very socially skilled. Many tend to be reclusive and introverted. There are some exceptions. (more…)

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