Is intelligence important for trading?

Discussion in 'Psychology' started by 0008, Dec 2, 2002.

  1. JayK

    JayK

    I think that most of the really successful traders are both very intelligent and very well educated. That's because in our culture, intelligent people seek more education, get scholarships, etc.

    Another consideration here is that we all know that to succeed in trading, one needs discipline as well as intelligence. This relationship strengthens the argument that good traders are well educated (getting a good formal education takes a lot of discipline.)

    On the other hand, lots of (average or mediocre?) traders come to trading out of a (conscious or subconscious) desire to gamble. That's where I would look to see more average intellect and lower educational achievement.
     
    #101     Dec 10, 2002
  2. There's partial truth to what you just said, however, I think most of it is a crock. I think you can be dumb as dirt and still make a good trader. My education helped me get my money to start trading, but it has not given me an edge on trading. I think the love of the game is what makes a good trader. You also have to be persistence and learn how to overcome failure, and not to get too over excited with success.
     
    #102     Dec 11, 2002
  3. qdz

    qdz

    patience (emotion control) is more important than intelligence.

    :p
     
    #103     Dec 11, 2002
  4. actually,
    having the 25K is the most important for trading:D
     
    #104     Dec 11, 2002
  5. That's it.

    However, to go a step further, I think the great traders are the ones who start with the 2K account at IB and trade up to the 25K. Then you can really say you've arrived. Digging in the trenches and paying the dues, that's where the learning process takes place.:D
     
    #105     Dec 11, 2002
  6. If you exhibit the same patience (emotion control) with your trading as you do with your elite trader whining, it becomes clear why you are subject to PDT problems.
     
    #106     Dec 11, 2002
  7. #107     Dec 12, 2002
  8. From what I have noticed it all revolves around discipline. In trading you need to be able to adapt and adjust to every market condition without an inkling of hesitation or emotion. So I do not think that education is totally necessary, it can only help as long as you have the ability to make changes in your trading without a fight.

    I once heard from a great trader that it all just comes to him in a blur, and the second he stopped caring about every little detail is when he found his edge. So maybe it is all about simplicity but who knows?!!

    Comp
     
    #108     Dec 12, 2002
  9. igsi

    igsi

    Putting aside whether "emotional intelligence" is important or not, I think that that so called "emotional intelligence" is hardly related to discussed topic. Yes, there is that word "intelligence". However, I think that the word "intelligence" is misused and to some extent "emotional intelligence" is oxymoron. It's kind of close to calling athletic abilities "muscle intelligence".
     
    #109     Dec 12, 2002
  10. Speaking for myself, I'm slightly intelligent but mostly I have common sense and strong discipline. I'm a profitable trader of 3 years and I could not have made it without those 2 later attributes.

    BOLT:cool:
     
    #110     Dec 12, 2002