Today with computer capability, if you know what it takes to be good, you can be excellent at strategy development and system trading. All you need is the right attitude and environment.
None of them could have done it without the help, the backing, of a good group of people behind them and with them.
Nevertheless, let us check to see what you should expect from yourself.
Winning traits do not change. Over 90 years, from Baruch or Livermore to Marty Schwartz or David Ryan 30 years ago; to contemporary big winners like Jamie Mai or Colm O’Shea, there are a fair number of commonalities they have and you should know and have.
Please do not take what I outline below and confused it with, what some of strategy vendors peddle off as, ‘Day Trading Top Secrets or Floor Trader’s Unknown Dirty Little Trick’s or some other headline grabbing marketing crap! I do mean CRAP!
What I outline here are traits consistent among the best and brought to light consistently over the years. My source is Jack Schwager’s research over the past 20 years and my 29 years of successful trading.
KEY number one, your educational level does not matter! One quality that has nothing to do with your ability to beat the market is your level of education, full stop. From street wise to a PhD in economics from Harvard, there is no common factor here connected to success in trading.
KEY number two, your personality type does not matter when it comes to being a successful trader. If you are a sanguine type, a choleric person, or someone that is phlegmatic or a combination, it does not matter. Throughout history the full range of personality, types have proven to be winning traders.
KEY number three, you understand that a winning trading approach can be based on any theory: economics, value based evaluation, event based systems, quantitative systems, or technical/priced based systems. The point is that successful traders understand they are all theories to help understand and predict the markets.
KEY number four and the one I feel is the most important. A successful trader finds an approach – a theory – to trading that makes sense to him, so he believes in it and stays with it. Remember, there is no single best way to approach investing or trading. There will be professional snobbery to the contrary but there are many ways to “skin a cat!”
I am a Chartered Market Technician and a priced based (market technician) strategy developer. To me price is everything! The market’s technical readings are the best way to attack the markets and win – professional snobbery added. This is my discipline and I teach it to a fresh group of 20 to 25 developers / traders each year, plus I work with my 40+ members in the TMT group.Subscribe Today
None of our members is entry level or has less than a year experience and a few of the members have as much experience as I do.
Technical based trading may not be for you, if it does not feel right, do not do it. However, if you understand the markets in terms of crowd behaviour and price, the production of sound methods, systems, strategies and procedure is paramount to take advantage of the market.
To find a winning trading strategy can be very difficult. Many of the tried and true ideas of the 80s and 90s, while still valid, are only building blocks today. It takes work and collaboration.