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Is a great trader just a trader who finds a great strategy?
- Thread starter ForexPro
- Start date
A good trader is a trader who finds a great strategy or great system. He is a loser without it. That doesn't make for a great trader, when that strategy loses effectiveness, the guy is just another average trader.
A great trader doesn't need a strategy. He can look back into his past experiences and his sense for predicting markets based on mass psychology and fundamentals while taking into account the chart and technicals. A great trader feels the movements, and can predict the market with high accuracy. He could explain what he feels, but it would be lost on most people because they don't have the great trader's experience. Experience is not the most important thing for traders. Quality experience is. Its learning from what you see on the screens everyday, not just seeing the action everyday.
A great trader doesn't need a strategy. He can look back into his past experiences and his sense for predicting markets based on mass psychology and fundamentals while taking into account the chart and technicals. A great trader feels the movements, and can predict the market with high accuracy. He could explain what he feels, but it would be lost on most people because they don't have the great trader's experience. Experience is not the most important thing for traders. Quality experience is. Its learning from what you see on the screens everyday, not just seeing the action everyday.
This
Will get you to where you are going.
Interestly enough, different skill-sets will assist your edge (knowing how to be calm in stressful situations, good computer/programming/database knowledge, good visual ability, good logic and thinking ability) are added plusses, and quite often will make the difference between performance which is just good and performance which is great.
Last, but not least, LUCK most definitely is a factor in this game.
Good trading,
JJ
plus thisQuote from detective:
A good trader is a trader who finds a great strategy or great system. He is a loser without it. That doesn't make for a great trader, when that strategy loses effectiveness, the guy is just another average trader.
A great trader doesn't need a strategy. He can look back into his past experiences and his sense for predicting markets based on mass psychology and fundamentals while taking into account the chart and technicals. A great trader feels the movements, and can predict the market with high accuracy. He could explain what he feels, but it would be lost on most people because they don't have the great trader's experience. Experience is not the most important thing for traders. Quality experience is. Its learning from what you see on the screens everyday, not just seeing the action everyday.
Quote from showyouwang:
i think the consensus is a great trader needs to have psychology and edge, one that he discovered through hours of screen time.
after all, if a great trader was stuck with a crappy edge trying to squeeze money out of a rock, he really wouldn't be that great of a trader if he didn't realize he had a crappy edge
Will get you to where you are going.
Interestly enough, different skill-sets will assist your edge (knowing how to be calm in stressful situations, good computer/programming/database knowledge, good visual ability, good logic and thinking ability) are added plusses, and quite often will make the difference between performance which is just good and performance which is great.
Last, but not least, LUCK most definitely is a factor in this game.
Good trading,
JJ
Quote from JimmyJam:
LUCK most definitely is a factor in this game.
The beautiful thing about trading...
Is that one can chose the level of variance...
In contrast to poker...
Where high variance (luck factor) is insurmountable...
Except by pooling winnings with other top players.
In trading...
One can be successful with a high variance strategy...
Which may or may not produce higher long-term returns...
OR
One can be successful...
With low variance, market neutral scalping strategy...
Which would show a profit perhaps 80% of trading days...
(Think market making firms like IB)...
And luck plays almost no role whatsoever in a time frame of several months or more.
The choice depends on your personality.
No. Superior trading involves discipline and courage, two traits that vast majority cannot attain either because of their inferior experiences in life or their genes. Markets are a place that segregates the inferior from the superior.
Most losers blame markets (externalize) and not themselves (internalize).
Most losers blame markets (externalize) and not themselves (internalize).
Quote from YeahIknow:
If so could anyone be a great trader? or does it take a lot more besides the strategy?
vansmarket
Guest
math, computers and engineering may just proves the guy is smart and has a logical mind.
having a math degree, computer and engineering and doing 4 years of school is 'NOT' a prerequisite in being a great trader or even required.
having a math degree, computer and engineering and doing 4 years of school is 'NOT' a prerequisite in being a great trader or even required.
Quote from QuantPlus:
NO.
There is a popular misconception...
That a trader becomes successful when he "finds a strategy".
Why is this FALSE?
Because...
Any profitable strategy only works for a finite amount of time...
Whether it's days or weeks or months or years.
A great trader has the TALENT + EXPERIENCE + INFRASTRUCTURE...
To keep evolving his strategies...
Coming up with new ones...
And dropping approaches that stop working.
"Staying ahead of the curve"...
Is a lot like crossing a raging river by jumping from rock to rock.
In other words...
You have to come up with 100s and 1000s of good ideas...
Over the course of a career.
This is very, very hard to do in the long run...
Even Specialist Firms loaded with talent and money and connections are worth < $0.10 on the dollar today.
When I see young traders looking for a "holy grail"...
I just shake my head at the futility.
The best thing to do...
Is get a hardcore education in Math, Computers, Engineering, or even Philosophy.
Each of these disciplines FORCES you to think LOGICALLY...
Something Economics or CFA or any business program does NOT do.
If you have a hardcore education...
You will know exactly what I am talking about...
The others will not understand.
Actually, college is bad for most people in trading as it mostly creates one of two types of people. First you have those who by brainwashing cement their beliefs and they become rigid to change. Second type is constantly searching for truth. The by-product which is second guessing, playing devils advocate, questioning, etc..
These are recipes for blowup in the markets.
College is good for esoteric task based salary jobs.
Ask any great trader, I don't think he learned anything about the markets in college.
Academics of the market never make money, they are either economists, or sell books/DVD's.
These are recipes for blowup in the markets.
College is good for esoteric task based salary jobs.
Ask any great trader, I don't think he learned anything about the markets in college.
Academics of the market never make money, they are either economists, or sell books/DVD's.
Quote from vansmarket:
math, computers and engineering may just proves the guy is smart and has a logical mind.
having a math degree, computer and engineering and doing 4 years of school is 'NOT' a prerequisite in being a great trader or even required.