I think in part it may be correlated with a self made person, just like one who starts their own business whether it be a restaurant, plumbing company, retail store, etc. Early on you work your tail off just to survive, knowing the failure rate is high in start-ups. The frugal or thrifty mentality may become a part of who you are over time. Some simply continue along with this mindset regarding money and are cautious with their spending. And I recall years ago when I read The Millionaire Next Door that the authors pointed out that many self made millionaires are exactly like this -- frugal/thrifty. And living below their means is in part what allowed them to become millionaires and financially independent.
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Characteristics of a Successful Trader
- Thread starter EricP
- Start date
I think in part it may be correlated with a self made person, just like one who starts their own business whether it be a restaurant, plumbing company, retail store, etc. Early on you work your tail off just to survive, knowing the failure rate is high in start-ups. The frugal or thrifty mentality may become a part of who you are over time. Some simply continue along with this mindset regarding money and are cautious with their spending. And I recall years ago when I read The Millionaire Next Door that the authors pointed out that many self made millionaires are exactly like this -- frugal/thrifty. And living below their means is in part what allowed them to become millionaires and financially independent.
Being thrifty may not always a good idea.
For example, driving is one of the most dangerous things anyone of us can do. And when you get into an accident its much better to be in a 75k Lexus than a 25k Toyota cause the Lexus has all kinds of active and passive safety features that can save lives.
And if a trader blows up - he is much better off with a 1 million dollars in home equity than 100k in home equity. Because after the blowup - at least the guy with a 1 million dollars in home equity can sell the house and he can have 1 million to live off of and rebuild.
Having 200k in gold can also be a great idea if hyperinflation takes hold all over and all fiat currencies collapse.
And if visiting massage parlors, shopping at whole foods, and frequent vacations help keep your mind calm and disciplined - then its all worth the expense cause a calm disciplined mind doesn't allow huge losses.
Money leaving the bank account should not always be seen as an expense, sometimes its a good investment in the long run.
That all being said I'm pretty thrifty and will remain so until I'm making at least 100k a month consistently.
For example, driving is one of the most dangerous things anyone of us can do. And when you get into an accident its much better to be in a 75k Lexus than a 25k Toyota cause the Lexus has all kinds of active and passive safety features that can save lives.
And if a trader blows up - he is much better off with a 1 million dollars in home equity than 100k in home equity. Because after the blowup - at least the guy with a 1 million dollars in home equity can sell the house and he can have 1 million to live off of and rebuild.
Having 200k in gold can also be a great idea if hyperinflation takes hold all over and all fiat currencies collapse.
And if visiting massage parlors, shopping at whole foods, and frequent vacations help keep your mind calm and disciplined - then its all worth the expense cause a calm disciplined mind doesn't allow huge losses.
Money leaving the bank account should not always be seen as an expense, sometimes its a good investment in the long run.
That all being said I'm pretty thrifty and will remain so until I'm making at least 100k a month consistently.
Quote from Arjun1:
Being thrifty may not always a good idea.
For example, driving is one of the most dangerous things anyone of us can do. And when you get into an accident its much better to be in a 75k Lexus than a 25k Toyota cause the Lexus has all kinds of active and passive safety features that can save lives.
That actually pretty ignorant. A Lexus isnt going to do any better in an accident. You realize they are made by the same company right?
Quote from TSGannGalt:
Eric,
I take back all the msgs I've mentioned in PM. My original instincts were correct. You are a one hit wonder. Seriously, I'll give you another year, and you'll be a lighter-weight Dan Zanger living off his past success.
Not to mention, most of the bashing I've done is pretty much an act to divert some of Eric's "ironic material" , for his sake. I'm a moron, mentioning this but who cares. It's actually great not to care what people think of you in ET.
Phew... great that I cleared that off my chest.
So... continue discussing...
I'm out.
Anyting wrong with Dan Zanger?
If I have to point to only one characteristic it will be:
The trader can wait for more profits and he is not tempted to move his stop.
This is close to imposible to do, unless you have confidence of your trading and money management plans.
If the trader can't do the above and on top of that keeps changing his trading and money management plans then that trader is lost.
The trader can wait for more profits and he is not tempted to move his stop.
This is close to imposible to do, unless you have confidence of your trading and money management plans.
If the trader can't do the above and on top of that keeps changing his trading and money management plans then that trader is lost.
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.
This is not quite accurate. There are numerous systems and traders out there that are profitable with 40% winning trades. Depends on what your risk reward is.
EricP - Thanks for some insight.
Folks - some of us actually use the ignore button - but then ya'll mess it up by quoting the one on ignore - Thanks!!