Trading and Intelligence

[elomich]

I wanted to gather some opinions on the role intelligence plays in trading. I personally believe trading is about discipline, emotional intelligence, patience, etc...

Having the intelligence to understand this and apply it is one thing. But what role do you think actual intelligence has in:

Scalping
Swing Trading
Long term fundamental trading
Technical Analysis-based trading
Automated trading/system design

Look forward to hearing your thoughts.

 

[maxpi]

Quote from elomich:

I wanted to gather some opinions on the role intelligence plays in trading. I personally believe trading is about discipline, emotional intelligence, patience, etc...

Having the intelligence to understand this and apply it is one thing. But what role do you think actual intelligence has in:

Scalping
Swing Trading
Long term fundamental trading
Technical Analysis-based trading
Automated trading/system design

Look forward to hearing your thoughts.

You'd do well to sort those out more by the Myers-Briggs personality type that is attracted to each style of trading than overall intelligence. People gravitate to what appeals to them.

Each personality type has a completely different take on their own work and other's.. Introverts have dominated longer term stuff because it's a type of work that is done alone pretty muchly... They will defend their ideas based more on protection of their territory than on their actual results. Most fund managers do not beat indexes! Their opinions about Automated or Technical trading of any kind comes more from a desire to not have "their" territory invaded. Lots of Academics can put up really good arguments about how Systems trading is random, and they have done so on ET even, which is owned by guys that made far more than any academic could ever hope for.

Automation guys don't argue with people about what works, they just go to work like good engineers and technicians and if it works, fine, they move on to solve other problems. ENTP's are the best Engineers, I've worked with the best, they are the best, they invent things when they need something new to work...

Scalpers are another breed altogether... I could not possibly sit at a terminal watching the DOM and scalp.. I hate video games pretty muchly too... I'm really happy for them that they can do that, and I'll never, ever, try to compete in that arena.