Victor Niederhoffer lately posted on the theme of “What is a Trader?” together with and thus announced a contest for the best brusk seek on that topic. The winner volition have $1500 and, if my sense alongside a Niederhoffer competitor many years agone holds true, something much to a greater extent than valuable. It was my winning of Niederhoffer together with Kenner’s competitor on finding the best stock marketplace position indicator that led to a catch to Victor’s trading functioning together with opened the door to a whole novel way to thought markets. (That winning indicator was a correlation of the average beats per infinitesimal of pop music together with the grade of the Dow Jones Industrial Average).
As the quote inwards a higher house captures, at that spot is an entrepreneurial together with competitive essence to trading. (Props to Henri together with the Best Trading Tweets site for the card.) Many are drawn to trading because of its independent nature: y’all rely on your judgment, y’all hold upwardly for yourself, together with your rewards are a straight aspect of your talents together with skills. It is inwards that spirit that I offering the next perspective on “What is a Trader”:
I would define a trader every bit “an intellectual entrepreneur: i who generates ideas together with manages their conduct chances together with vantage inside a competitive fiscal marketplace.” This is why the term “speculator” is an accurate one. The derivation of “speculator” is from the Latin pregnant “contemplation, observation” together with past times the mid 15th century came to hateful “pursuit of the truth past times agency of thinking”. Ayn Rand regarded the trader every bit an ideal, every bit i who offers value for value, rather than living off the efforts of others. The trader likewise represents Rand’s ideal of homo every bit a thinking animal: i who relies on his/her perception inwards pursuit of the truth together with is willing to bring the risks of that reliance to attain superior returns.
At its best, trading is an do inwards what makes us distinctively human: the mightiness to perceive reality together with invention together with execute our actions based upon that perception. Trading is non close making money, though that is a desired outcome; trading is likewise non close technical patterns or telephone commutation relationships. At its root, trading is entrepreneurship of the mind, i of the purest forms of intellectual competitor inwards around of the most competitive global arenas.
Further Reading: Trading every bit Entrepreneurship