Characteristics of a Successful Trader

Quote from Dustin:

Regarding lifestyles of those in question...

-Of the guys that are married most of them have been with their wives since before they made much $. Now most of the wives don't work, or at least don't have to. This goes for my situation also. There's a big difference between living a great/healthy lifestyle, and showing all of your neighbors that you make multiples of their income. My friends and family would probably guess I make 1/4 of what I do and that would go for most of the guys I know.

-The more you make, the less you want to spend. It's more exciting to see your money grow than to have a nicer car imo. I would rather have my (future) kids college accounts, 401ks, and IRA's funded then take vacations and stock my wifes closet with Prada.

-I can vouch for the fact that Eric would be happier eating at McDonald's than just about anywhere else. He sees value there :-)
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The question is, is that the right way?

To this day I remember an old couple we met in South Pacific. They stayed in a 5 star deluxe hotel and were having their dream vacation. They were well off and enjoyed the stay, but he was 76 and she was 72. Now wouldn't they enjoyed it so much more when they were 40 years younger?

Do not postpone joy!
 
Quote from Dustin:

Slow day here so here you go...

1. You are missing the purpose of the P&L thread. In the early days of ET before these threads existed it seemed like every day someone asked if it was possible to make money trading. There were large threads of skeptics against the few that were profitable, but nobody believed them because there wasn't proof. Now with P&L you just point them to the thread, end of discussion.

It also serves as motivation. For example I put myself in the same category as RedInk but he's been outperforming me for a few months and it's starting to get on my nerves. Hopefully this motivates me get off my ass and do some new stuff. For people like Eric and RedInk to participate in that thread is pretty amazing. They are all the proof you could ever need that trading can be a great j*b if you work hard enough.

So no, it's not about being humble. It's about participating in something special that exists nowhere else and I think they understand that.
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My thoughts on the blotter thread:

http://www.elitetrader.com/vb/showthread.php?s=&postid=1572522#post1572522

Actually, I think the entire thread above, is worth a read. It's not a long thread, so not difficult, but some good thoughts/comments in there, as I recall.
 
Dustin and Brandonf,

Thank you for your response. I agree that it's a mixture of both and the degree of which side (if there is a side... but it was an example I provided) depends on the individual.

Then... this whole thread becomes very trivial. I know one guy who's really happy with trading and works hard for his family. He's the type who spoils his daughter buying things, which I respect. He trades to make his family happy. Simple as that. But then... all of what has been mentioned has little to with the Daddy trader.

On the flip side, I can imagine a trader (I've never met a trader who's "only" thinking about money... seriously) who's obsessed with money. What's mentioned so far also has little meaning based on the discussion.

And... hitting the grey side, there are people fit the profile of what Eric mentions.

It's trivial. (I'm not trying to be witty... or degrade anyone. I wanted to prove a point. So I asked the question of the definition but I think you agree.) There is no definition of a successful trader, in realistic terms. So there is no point of trying to define a character where is no "definition".

Of course... we can always set a definition and start working from there. Feel free to suggest.
 
Quote from volente_00:

The best money management skills in the world are worthless if you are AFRAID of taking the trade.
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Isn't that a good thing? You never want to be comfortable with a trade.

"AFRAID" would be a bit extreme but I'm "serious" of taking a trade...

Is that psychological? Bad thing?

I dunno, you tell me.
 
Quote from heypa:

The most important characteristic of a single successful trader is that he wins more than he loses. He also is a member of a rather diverse group.
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So a trading performance is a character?

Or is performance a result of a character (if there is one... which we are trying to discuss)
 
Quote from saxon22:

I have noticed that there is a lot of talk about being thrifty and humble. I am well aware of the definitions for both but fail to understand the meaning in the context of somebody who is a successful trader.


Can you guys provide examples?
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I can't speak for anyone else as each one of us knows what makes us happy in life. I've been trading full time for 12+ years. It took a a few years to get to a level where I felt okay and comfortable with my profits relative to my objectives. I've never been one into "stuff" so for me spending $$$ on materialistic junk wasn't much of a temptation. But I realized that when I reached a point of feeling somewhat secure with my year to year profits that I had choices I could make. I could take some time off when I chose to. I had freedom. I did not need to trade the entire day. That (freedom) is something I can't place a dollar value on. But it opened up some new options for me. For the past 8 years I've spent some time working with kids in schools, mentoring and tutoring. The "rewards" I get from working with disadvantaged kids to me far outweighs buying myself some new "stuff". So this is why I am more thrifty than many. Also, look at where the "keeping up with the Jones" mentality has got many Americans in the current economic crisis -- many losing homes, declaring bankruptcy, stressed out, unemployed.

And that's where the "humble" part comes in IMO. I realize that as hard as I've worked to try to be a profitable trader that it could be taken away at any time. We've all had major losers in our trades, some more catastrophic than others. In some ways I look at the short term and say I'm only as good as my last trades.
 
Quote from DHOHHI:

I can't speak for anyone else as each one of us knows what makes us happy in life. I've been trading full time for 12+ years. It took a a few years to get to a level where I felt okay and comfortable with my profits relative to my objectives. I've never been one into "stuff" so for me spending $$$ on materialistic junk wasn't much of a temptation. But I realized that when I reached a point of feeling somewhat secure with my year to year profits that I had choices I could make. I could take some time off when I chose to. I had freedom. I did not need to trade the entire day. That (freedom) is something I can't place a dollar value on. But it opened up some new options for me. For the past 8 years I've spent some time working with kids in schools, mentoring and tutoring. The "rewards" I get from working with disadvantaged kids to me far outweighs buying myself some new "stuff". So this is why I am more thrifty than many. Also, look at where the "keeping up with the Jones" mentality has got many Americans in the current economic crisis -- many losing homes, declaring bankruptcy, stressed out, unemployed.

And that's where the "humble" part comes in IMO. I realize that as hard as I've worked to try to be a profitable trader that it could be taken away at any time. We've all had major losers in our trades, some more catastrophic than others. In some ways I look at the short term and say I'm only as good as my last trades.
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In the contrary, we have Paul Tudor Jones who's a major socialite in NYC. Limos to high end parties, Crystal champagne, 3 model girl friends... And he was happy doing it.

Trivial but at least, it's good to hear you're doing what makes YOU happy which is the most important. Rather than trying to live under someone else's standard.
 
Quote from Dustin:



-The more you make, the less you want to spend. It's more exciting to see your money grow than to have a nicer car imo. I would rather have my (future) kids college accounts, 401ks, and IRA's funded then take vacations and stock my wifes closet with Prada.
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Agree with everything except vacations, if it means trips. I don't know how you live, but seeing the world is important for both you and your kids. I know a bunch of rich guys that have never gone outside their country and it is really sad.
 
Quote from heypa:

TSGannGalt

No.It is a characteristic (trait) not a description of a character.
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Hrrrrmmm...

Apologize. I can't seem to understand. (I ain't that smart after all)

Care to elaborate?
 
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