Two Corking Predictors Of Trading Success

For many years I’ve been involved inwards interview in addition to choice processes to hire traders at prop firms in addition to hedge funds.  Those years of sense bring been valuable, because I’ve been able to see, first-hand, who makes it inwards the trading globe in addition to who doesn’t.

One standout decision comes from all of this:  The 2 best predictors of long-term trading success are:

1)  Originality – Traders who develop their own, unique approach to markets are to a greater extent than probable to succeed that traders that employ generic methods.  My mutual impression when I consider a promising trader is, “Wow…why didn’t I mean value of that?”  I rapidly recognize that the trader has achieved an insight that others bring not.  That master thinking is to a greater extent than probable to generate distinctive results than run-of-the-mill thinking you lot could require heed from whatever of a dozen marketplace seat participants.

2)  Flexibility – The worst traders I know are perma-bulls or perma-bears.  They tally markets to their ain thinking, rather than conform to changing markets.  The best traders travel alongside a form of anti-confirmation bias:  they actively scan for data that does non tally alongside their views.  That enables them to live flexible in addition to conform rapidly to novel marketplace seat conditions.    

If I were to house these 2 predictors of success nether i umbrella, it would live “real-time creativity.”  The successful trader sees in addition to approaches markets inwards fresh ways–and continually refreshes those perceptions in addition to methods.  

The recent Forbes post emphasizes that this real-time inventiveness is something that tin sack live learned.  Indeed, the structured methods referenced inwards that post service tin sack assistance us cultivate master in addition to flexible thinking.  We can’t stand upwardly apart from the herd unless we’re able to stand upwardly to a higher house the herd inwards our perception.  Consensus, status-quo thinking volition never generate standout returns.   

As the latest post service notes, using a trading magazine to practice our capacities for originality in addition to flexibility is a bang-up agency to develop ourselves to honor the chance inwards markets that others are missing.  Two questions are a bang-up starting indicate for such journaling:  1)  What am I seeing inwards markets today/this calendar week that others are non seeing? in addition to 2) What am I seeing inwards markets today/this calendar week that is unlike from what I saw yesterday/last week? 

Further Reading:  The Hard Work of Trading is Achieved Through Play

Leave a Reply