I was wondering if you're a hedge fund and you had to hire traders, how would you get around the 90% failure rate? 1. Trade only fully automated systems that have been carefully researched and back tested. Remove all discretion. 2. Hire only the smartest guys (top tier MBAs, PHDs, etc.). Being very intelligent can cause ego problems and ego problems are the biggest cause of failure in trading. So I don't know how smart it is to go this route. 3. Only hire experienced traders with great track records. This can be very expensive. 4. Don't trade at all. Invest by dollar cost averaging into good companies and hold for the long run. 5. Invest very heavily in all new traders. Have I missed anything?