That quote in context:
Why do so many traders fail in the marketplace?
For the same reason that most baby turtles fail to reach maturity: Many are called and few are
chosen. Society works by the attraction of the many. As they are culled out, the good ones are left,
and the others are released to go try something else until they find their calling. The same is true for
other fields of pursuit.
What can a losing trader do to transform himself into a winning trader?
A losing trader can do little to transform himself into a winning trader. A losing trader is not going
to want to transform himself. That' s the kind of thing winning traders do.
How would you rate the relative importance between psychology and market analysis to
successful trading?
Psychology motivates the quality of analysis and puts it to use. Psychology is the driver and
analysis is the road map.
You have focused a lot on the field of psychology. Can you tell by talking to a person whether
that person would probably be a winning or losing trader?
Yes, the winning traders have usually been winning at whatever field they are in for years.
What traits do you look for to identify the winning trader personality?
1. Не/she loves to trade; and
2. Не/she loves to win.
Don't all traders want to win?
Win or lose, everybody gets what they want out of the market. Some people seem to like to lose, so
they win by losing money.
I know one trader who seems to get in near the start of every substantial bull move and works his
$10 thousand up to about a quarter of a million in a couple of months. Then he changes his
personality and loses it all back again. This process repeats like clockwork. Once I traded with him,
but got out when his personality changed. I doubled my money, while he wiped out as usual. I told
him what I was doing, and even paid him a management fee. He just couldn't help himself. I don't
think he can do it any differently. He wouldn't want to. He gets a lot of excitement, he gets to be a
martyr, he gets sympathy from his friends, and he gets to be the center of attention. Also, possibly,
he may be more comfortable relating to people if he is on their financial plane. On some level, I
think he is really getting what he wants.
I think that if people look deeply enough into their trading patterns, they find that, on balance,
including all their goals, they are really getting what they want, even though they may not
understand it or want to admit it.
A doctor friend of mine tells a story about a cancer patient who used her condition to demand
attention and, in general, to dominate others around her. As an experiment prearranged with her
family, the doctor told her a shot was available which would cure her. She constantly found excuses
to avoid appearing for the shot and eventually avoided it entirely. Perhaps her political position was
more important than her life. People' s trading performance probably reflects their priorities more
than they would like to admit.
I think that some of the most flamboyant and interesting traders are playing for more than profits
alone; they are probably also playing for excitement. One of the best ways to increase profits is to
do goal setting and visualizations in order to align the conscious and subconscious with making
profits. I have worked with a number of traders in order to examine their priorities and align their
goals. I use a combination of hypnosis, breathing, pacing, visualization, gestalt, massage, and so
forth. The traders usually either (1) get much more successful, or (2) realize they didn't really want
to be traders in the first place.
Surely, some people lose because they lack the skill, even though they really want to win.
It is a happy circumstance that when nature gives us true burning desires, she also gives us the
the means to satisfy them. Those who want to win and lack skill can get someone with skill to help
them.
