Mindsets of Successful Traders

Discussion in 'Psychology' started by Frederick Foresight, Jul 6, 2025 at 10:55 AM.

  1. Did he really use EW beyond his earlier years?
     
  2. *Sigh*

    If only I were younger and smarter. But some of us are destined to max out as journeyman.
     
  3. wxytrader

    wxytrader

    Advantages of Institutional Traders:
    • Significant Capital:
      Institutional traders, such as hedge funds and pension funds, manage vast sums of money, allowing them to execute large-scale trades and potentially influence market prices.
    • Access to Information and Resources:
      They have access to sophisticated analytical tools, extensive research, and teams of experts, enabling them to make well-informed trading decisions.
    • Advanced Trading Strategies:
      Institutional traders employ complex strategies, including arbitrage, high-frequency trading, and event-driven trading, often requiring specialized expertise and technology.
    • Deep Liquidity:
      They can access deep liquidity pools, which can be crucial for executing large orders with minimal market impact.
    • Lower Trading Costs:
      Institutional traders often negotiate lower trading fees and commissions due to the volume of their trades.

    Wonder how well they would do trading from their basement on a laptop. :)

    Yes, I am aware of dude who spoofed billions from his apartment...
     
  4. wxytrader

    wxytrader

    The market doesn’t reward intelligence — it rewards execution, discipline, and emotional control. In fact, many of the smartest people struggle because:

    They overanalyze and miss simple trades.

    They second-guess instead of sticking to a system.

    They try to be “right” instead of profitable.

    They obsess over edge but forget the edge is useless without risk.


    Meanwhile, someone with a basic setup and a clear plan will grind out consistent profits simply by not getting in their own way.
    .

    @newwurldmn
     
    Businessman likes this.
  5. Businessman

    Businessman

    I think it was 'Trader Vic' who said this in New Market Wizards:

    "The key to trading success is emotional discipline. Think of all the bright people that choose careers on Wall Street. If intelligence were the key, there would be a lot more people making money trading"

    Then you had math expert Bill Eckhardt in the same book saying:

    "Average intelligence is enough. Beyond that, emotional makeup is more important"


    Neither of the above quotes should be surprising to anyone who has spent time actually trading
     
    Last edited: Jul 6, 2025 at 6:44 PM
    themickey likes this.

  6. You don't even know how to price the forward. You didn't know the source of the div of one of your crypto-payers. You can't calc total return... the result is that you are (hypothetically) up in a bull market.

    I think that you got into crypto divs while they were paying well but are down on the year.

    TL;DR, you're full of shit.
     
    taowave likes this.
  7. newwurldmn

    newwurldmn

    We all could have lived our lives better if we were wiser in our younger days.

     
  8. newwurldmn

    newwurldmn

    High intelligence is a requirement. You have to process the same information better than everyone else.

    however it’s not a sufficient condition for being a good trader.
     
  9. Sekiyo

    Sekiyo

    Does the market sometimes misprice the forward ?
    Actually I've seen that even stock are 3D forwards.

    Screenshot_20250707_005657_Chrome.jpg
     
    Last edited: Jul 6, 2025 at 7:18 PM
  10. taowave

    taowave

    He looked at trades in an EW framework early on, can’t say what impact it has on decision making over the last 20 years

    I do know he is exceedingly disciplined …






     
    Frederick Foresight likes this.