Traits of Elite Traders: What Sets Them Apart?

ironchef · Jan 14, 2024

SimpleMeLike said:
Hello taowave,

Thank you very much. I will keep up the good work.
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A humble suggestion: Write a book.

ironchef · Jan 14, 2024

Laissez Faire said:
I just re-read Market Wizards volume one and two. The methodologies are wide and varied, but I observed some common traits and skills:

1) Risk management

Don't bet the farm. Trade small enough that you'll be able to realize your edge over a large number of trades.

2) Scaling down during a losing streak and increasing size during good periods

Ed Seykota:

I handle losing streaks by trimming down my activity. I just wait it out. Trying to trade during a losing streak is emotionally devastating.

Trying to play “catch up” is lethal.

3) Patience

James Rogers:

It sounds like you have a great deal of conviction when you put on a trade.

Yes, I usually do; otherwise, I don’t bother doing it. One of the best rules anybody can learn about investing is to do nothing, absolutely nothing, unless there is something to do. Most people always have to be playing. They can’t just sit there and wait for something new to develop.

Do you always wait for a situation to line up in your favor? Don’t you ever say, “I think this market is probably going to go up, so I’ll give it a shot”?

What you just described is a very fast way to the poorhouse. I just wait until there is money lying in the corner, and all I have to do is go over there and pick it up. I do nothing in the meantime.

Even people who lose money in the market say, “I just lost my money, now I have to do something to make it back.”

No, you don’t. You should sit there until you find something.

Tom Baldwin:

From your perspective, what does the average trader – that is, public trader – do wrong?

They trade too much. They don’t pick their spots selectively enough. When they see the market moving, they want to be in on the action. So, they end up forcing the trade rather than waiting patiently. Patience is an important trait many people don’t have.

Waiting for the right spot?

Right, I bet most people are probably ahead after their first five trades. They think, “This is great, like free money.”

But then they forget that the reason they made money on their early trades was because they waited a long time. They said, “I bet this is a good spot to buy it because I’ve seen the market act this way a lot of times.” And they made money. But all of a sudden, they are doing a trade every day.

The next thing that happens is they lose on a few trades, and invariably don’t know how to take a loss. They made money to start, and before they know it, they are even. Now they hesitate. “Where do I get out?”

4) Contrarian thinking/trading

5) Confidence in their approach

6) Discipline

Of course, you need a methodology/approach that gives you an edge. The above doesn't matter if not. But, on the other hand, you can have a profitable methodology that's not profitable if you don't master the above.
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You forgot to read the most important section?

Zen And The Art Of Trading

It is how @SimpleMeLike trades.

SimpleMeLike · Jan 14, 2024

ironchef said:
A humble suggestion: Write a book.
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Good Morning ironchef,

Thank you for the suggestion. But why write a book?

SimpleMeLike · Jan 14, 2024

ironchef said:
You forgot to read the most important section?

Zen And The Art Of Trading

It is how @SimpleMeLike trades.
More...

Good Morning ironchef,

What is Zen and the Art of Trading?

themickey · Jan 14, 2024

SimpleMeLike said:
Good Morning ironchef,
What is Zen and the Art of Trading?
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this might describe it...
https://zenandtheartoftrading.com/blog/zen-and-the-art-of-trading/

SimpleMeLike · Jan 14, 2024

themickey said:
this might describe it...
https://zenandtheartoftrading.com/blog/zen-and-the-art-of-trading/
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Good Evening themickey,

Only 1 Question:

1. Is the author of Zen and the Art of Trading website, course, or book a proven ES futures market trader that has made +$1 million in one year trading where I can see within 1 minute of proof?

Please respond with the following Yes, No, I do not know only please.

Thank you,

Lee-me · Jan 14, 2024

Learn from the past and keep learning. No weakmindedness.

themickey · Jan 14, 2024

SimpleMeLike said:
Good Evening themickey,

Only 1 Question:
1. Is the author of Zen and the Art of Trading website, course, or book a proven ES futures market trader that has made +$1 million in one year trading where I can see within 1 minute of proof?
Please respond with the following Yes, No, I do not know only please.
Thank you,
More...

Dunno!

Many of them will put their students through hell chasing an answer to their esoteric questions about life and Zen through countless ridiculous tasks and challenges both physical and mental, only to eventually discover that the question was the problem in the first place.
If you go to a Zen teacher, he’ll say, “well I have nothing to teach. There is no problem, everything is perfectly clear.”
And you think that one over. And you think, “he’s probably being cagey.”
But the teacher says quite honestly, “I haven’t anything to tell you. I don’t teach anything, I have no doctrine.”
But the student thinks, “my, this is very deep.”
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themickey · Jan 14, 2024

Trading is a journey, not a destination.
Just keep tweaking and tweaking and tweaking....

ironchef · Jan 14, 2024

SimpleMeLike said:
Good Morning ironchef,

Thank you for the suggestion. But why write a book?
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Free money sir.