Tuesday, March 31

Qualities which define a Successful Traders

One of the most interesting aspects of working as a trading coach is the ability to see, first hand, what contributes to the success of traders. So often the factors that lead to success are not those emphasized in mainstream articles and books. Here are two unappreciated virtues I see among successful portfolio managers and traders:
1) The ability to tolerate uncertainty - Every trader at certain point of time uncertainty ,where due to violent market moves gets confused which side to trade. Its how you trade in this uncertain period will decide whether you will be successful trader  or  will end up being a loser.
Professional traders aviod such uncertain times In such uncetain situation, the modal opinion of any trader should be "I don't know". Uncertainty is itself a view and, in fact, should be one's base case. When a trader cannot tolerate uncertainty and needs to manufacture conviction, the result inevitably is over trading the objective opportunity set. It is impossible to properly manage risk
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