Flexible and Reserved are two important qualities. By being flexible (or humble as already mentioned, not a strong-minded who know it all) is to be able to reverse his prior-belief in order to adapt to the current market conditions. By being reserved is someone who is not a loud-speaker, who will not seek to gain his popularity or credit by attempting to give recommendation or prediction. They won't tell you anything related to trading success in public, but if you ask them privately (by PM or mail) they will surely help you. Those reserved traders are found in the "Trader P/L 2008" thread such as TheRedInk, Szeven and so on.
Characteristics of a Successful Trader
- Thread starter EricP
- Start date
I don't think this OP is dwelling on the motherlode of traders' postmodern penis envy, whatever that might be. And it ain't the resurrection flashback of the '80s self-help shit, as far as I can tell. It's more about money management than anything else. For example, when he wrote A successful trader is logical, not emotional, emotion here doesn't refer to the Freudian ego or the narcissistic catharcism but to the perennial axiom of "hey yo, cut that fucking losses quick before ya turn into an investor." Man, that's a mouthful for a Freudian slip!
Had a few thoughts that might get this thread on track...
Eric and I are friends with many of the same traders. His posts are based on what he has observed over the years from the development of himself and these other guys. These are top 1% traders we are talking about.
The point being that while some of you may not agree with what he has to say, the ideas are based on reality and observation. No one concept is going to fit every trader...but this conglomeration of ideas can fit almost every profitable trader in some way, even if they don't realize it.
Regarding Douglas, I have found his books to be one step above drivel. If he put up some numbers himself maybe I would take a second look, but his books were only good for putting me to sleep.
Eric and I are friends with many of the same traders. His posts are based on what he has observed over the years from the development of himself and these other guys. These are top 1% traders we are talking about.
The point being that while some of you may not agree with what he has to say, the ideas are based on reality and observation. No one concept is going to fit every trader...but this conglomeration of ideas can fit almost every profitable trader in some way, even if they don't realize it.
Regarding Douglas, I have found his books to be one step above drivel. If he put up some numbers himself maybe I would take a second look, but his books were only good for putting me to sleep.
To each his own. I have read numerous books on trading and while most were pretty much worthless, The Disciplined Trader is the only one that had a strong positive impact in my trading in regards to consistency in profitabilty. I think it should be should be required reading for anyone before they ever place a trade. What is strange is his other book, trading in the zone, was not really beneficial to me at all.
That's interesting you recommend Disciplined Trader. I have Trading in the Zone and I agree mostly with Dustin. Not much help. I much prefer Brett Steenbarger, Enhancing Trader Performance, much better IMHO.
I know this isn't a characteristic, but important in it's own right, it having a mentor. Trying to learn how to trade successfully, when trading is so subjective, much more art than science is difficult to say the least. Good trading to all.
I rarely had a problem getting in the zone, my problem was staying disciplined and controlling my emotions while there. The Disciplined Trader was written 10 years before Trading in the zone was released. If I had only read it sooner, I would have paid a much lower tuition to the market during the learning curve in the beginnning. I have read it multiple times and to this day it remains the best trading book that I own. You can't go wrong for only $40.00.
BOOK REVIEW by Jaye Abbate, Traders' Library
The Disciplined Trader by Mark Douglas
......................................................................
Year after year Mark Douglas' classic "The Disciplined Trader" is one of the most highly recommended books for active investors and traders. Regardless of market climate or new developments like the rise of the online investing, this book remains every bit as relevant today, and continues to be a "must read" by top traders around the world.
Nothing kills a successful trade like emotions, the saying goes. And most traders are actually unprepared emotionally for the trading environment - as it requires you to discard much of what we're taught is important to function effectively in regular society. With deep insight "The Disciplined Trader" clearly explains exactly what is needed to overcome losing attitudes and psychological barriers, and come out a disciplined, consistently better trader.
Broken down into 4 sections, the book takes readers step-by-step through a complete "mental house cleaning" in an attempt to rid readers of deep-rooted, traditional thought processes. First, Cook provides an overview of the psychological requirements needed to win in the trading environment. The second section outlines challenges and problems inherent in becoming a successful trader - plus a host of on-target, usable solutions. Part three focuses on finding which behaviors you need to change to succeed more consistently in the market - followed by key steps for accomplishing this goal. And finally, Cook shows how to develop specific trading skills based on a clear, objective analysis of the markets.
Only a small percentage of people consistently triumph in the markets - be it bull OR bear market conditions - and they are overwhelmingly the ones that possess the mental discipline required to survive even choppy, unpredictable markets. Cook's book highlights the skills you must develop to become a "Disciplined Trader," including ....
- Mastering the "positive dynamics of achieving goals"
- Gearing yourself to respond responsibly to market changes, even if they throw your original "plan" off
- Pinpointing your "risk comfort level" - and learning to expand it
- Seizing opportunities immediately - "letting the market tell you how much is enough" - and much more.
Many traders read this book early in their trading career and pick up one or two tools for their trading arsenal. But most traders find they understand and benefit from the book even more upon second reading - or after they've actually been trading for awhile and can recognize in themselves many of the behaviors Cook targets as characteristics to change. It's simple, straightforward, and to the point - and has helped traders for decades sharpen their trading instincts and skills. No true trading library should be without a well-worn copy.
http://www.traderslibrary.com/moreinfo.asp?item=2121&SID=&lc=gurus_homepage
Did the author change his name as this review was being written?
1. Trading industry is not the church. You've obviously never worked in a professional environment. Someone else mentioned this earlier in this thread.
2. I don't believe in some "character" that makes a successful trader. It's an urban legend that the trading psycho-mentors pitch to the naive retail traders. I've met plenty of traders during the course of my career, starting at a ghetto prop. to an aggressive global institution. Everyone in the firm is all different, they all have their own set of personality and character. Some people are helpful and makes you wonder why the guy trades in a high stress environment. Some people are complete A-holes. Some people are crying sissies (literally) when they drink. One guy has ZERO analytical skills, prolly the biggest airhead I've ever met but somehow survives due to his unhuman sharp / keen 6th (real spidey sense) sense of danger. There's a bunch of drug addicts, alcoholics, geeks, jocks, savants/autistics, etc. etc.
If there is such a thing as a "character", then they're all being themselves. They don't care to profile and be something / someone that they're not. They know themselves and what they can do, and apply it to the full extent towards being profitable. If that is a "character" then so be it.
3. Lack of discipline comes from lack of clarity. First off, it's only human nature to "try" to correct a bad event. It's our innate brain function to avoid traumatic events. That's what learning is about. If you had skills and enough knowledge, you know what you did wrong on a bad trade (doesn't exactly mean a loss, FYI). For example, you may have overlooked a news event that triggered the move or you didn't consider the order flow in the book (Bad example but hopefully you get the point). Next time around, you won't forget to be attentive. It's a NORMAL productive way of learning how to trade.
For a bunch of newbies or a bunch of sheeple, they know they lost but don't know what they did wrong or missed out. In most events, it leads to a seek of finding an answer, and psycho-BS books and their material seemingly provides them with an answer. It's just like that warm-reading psychic fraud. They write what you want to hear, making you relate to situations similar to yours. Then they lead you into some "pseudo-science" BS...
Lack of discipline comes from leaving out too many things during the process of trading. That doesn't mean systematic trading is the key to success. The market changes all the time. Which ever the case, whether it be discretionary or systematic... you need to delegate what you will be doing and what kind of inputs you'll be putting in the trading you do.
4. I do agree with Douglass and Van Tharp to an extent that you need to have a edge. But markets change and strategies and systems fade. More than the edge itself, you need to seek for the skills to continue identifying and utilizing them. Most of the people who buy systems or a one-hit wonder traders don't last for that reason.
If there is such a thing as helping a newbie, then the man above says it well, "Give a man a fish; you have fed him for today. Teach a man to fish ; and you have fed him for a lifetime"
5. Finally, (I think I haven't cursed in this thread so far, so...) All you fuckers are a bunch of sissies. Now fuck off and START "THINKING FOR YOURSELF".
BWAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA
LOOOOOOHHHHOOOOOOOOOHOOOOOOOZZZZEEEEEERRRRRZZZZZZZ
<i>"A successful trader doesn't give a fuck about these psychological BS."</i>
So we cleared up the fact about your swearing in this thread before. Hope your pattern recognition skills are stronger in the charts than that.
Serious traders who reach the stage of this thread have long ago mastered the nuts, bolts and tape-reading skills necessary to know where price is going much more often than not. That part is difficult, but there are other aspects of trading execution much more difficult left to be hurdled.
The losers, drunks, druggies and mental cases you refer to working with before are no exception to that law. They either mastered self-control or will succomb to it. No exceptions.
Why do you think a vast majority of traders shorted and shorted and shorted the tape from open to highs today? Why do you think so many people most assuredly blew out by/before the end? The same reason(s) they always do inside strong trend moves.
Etc x 1,000 is what the context of those posts meant to say. But you knew that already, being the trade desk expert and all. You have every right to express your opinions in this low-brow message board environment, no doubt. Hope you enjoyed your contributions, priceless or worthless as the onlookers found them to be.
out
So we cleared up the fact about your swearing in this thread before. Hope your pattern recognition skills are stronger in the charts than that.
Serious traders who reach the stage of this thread have long ago mastered the nuts, bolts and tape-reading skills necessary to know where price is going much more often than not. That part is difficult, but there are other aspects of trading execution much more difficult left to be hurdled.
The losers, drunks, druggies and mental cases you refer to working with before are no exception to that law. They either mastered self-control or will succomb to it. No exceptions.
Why do you think a vast majority of traders shorted and shorted and shorted the tape from open to highs today? Why do you think so many people most assuredly blew out by/before the end? The same reason(s) they always do inside strong trend moves.
Etc x 1,000 is what the context of those posts meant to say. But you knew that already, being the trade desk expert and all. You have every right to express your opinions in this low-brow message board environment, no doubt. Hope you enjoyed your contributions, priceless or worthless as the onlookers found them to be.
out