What has Trading Taught You About Yourself?

I often see this cliche tossed around a lot.

Yet, its rare a trader shares exactly what is was about the market or their journey that led to a greater understanding of self.

There are some especially poignant revelations that for me, only made sense after the fact

The first being Ego. I had no idea, at the time, the wheel really need not be reinvented I still like to tinker with my own 'strategies'. But it was this painful relinquishment of Ego, this literal death of Self, that I was not going to single handedly conquer the market, but "only" follow in the footsteps of those laid before me, that led to the greatest breakthrough in my trading career.

The second was discernment. Something I often overlooked (in myself and the market) - this invaluable tool served as my trusty navigator to all the dead ends and pitfalls that so often riddle the path of the newbie trader.

I often analogize market success to a gigantic labyrinth. The newb trader starts at the beginning. Along the way, characters of every sort are encountered - the enlightened, the ignorant, and the malicious. Each is sincere in pointing "THE WAY". But only the intrepid Journeyman, and him alone, can make the decision to heed the wisdom of enlightened or the teachings of the deluded.

Perseverance is another key. But discernment straightens our path. We all only have so much patience

 

Not be GREEDY!

But then again greed is sometimes good...Think Gekko said that in Wall St.

 

Negativity KILLS any chance at becoming successful at trading..fix that and then you have a chance!

 

That MY opinion does not start with a capital letter, opinions of others DO

 

I learned first hand what Prospect Theory really means

 

You are as only as good as your next trade


You must learn how to lose small before you learn how to win big

 

Very true.

 

Ive learnt about the human biases we are all subject too, biases related to making and losing money, needing to be right, outcome bias etc Every human is subject to these biases but we all probably experience them to different degrees compared to other people and other traders.

I can now see how my own risk taking tolerance compares to other people..

I have learnt about the different personality types that exist and what my type is, was never exposed to that kind of stuff as an engineer.

 

actually learned this about vegas but I think it applies to Wall Stl as well.

Yes- it CAN get worse and NO - it doesn't HAVE to get better.

the other thing that I have learned is that its better to find a reason not to open a trade then to find a reason to open it. (at least for me thats been the case)

 

Since trading, I have realized three very important things:

1.) A healthy respect for risk management-usually this requires blowing out an account or two

2.) Discernment-knowing when to do something; the how and what is not nearly as important

3.) My greatest enemy looks me in the mirror every day.

Sincerely,
Daryl