I had an earlier post Curated Interview with Paul Tudor Jones from Curated Alpha. In the post, the author had referenced the book Market Wizards: Interviews with Top Traders by Jack D. Schwager. At the end of his book, Mr. Schwager put together a summary of those traits that he thought that the most successful market mavens had in common. I touched on this point in my earlier post where I made the point that there are countless ways to be a successful trader but at the root, the best develop a system that works for them and implements that system with few hiccups.
Below is the excerpt from the book;
There is no holy grail to trading success. The methodologies employed by the “market wizards” cover the entire spectrum from purely technical to purely fundamental – and everything in between. The length of time they typically hold a trade ranges from minutes to years. Although the styles of the traders are very different, many common denominators were evident:
- All those interviewed had a driving desire to become successful traders – in many cases, overcoming significant obstacles to reach their goal.
- All reflected confidence that they could continue to win over the long run. Almost invariably, they considered their own trading as the best and safest investment for their money.
- Each trader had found a methodology that worked for him and remained true to that approach. It is significant that discipline was the word most frequently mentioned.
- The top traders take their trading very seriously; most devote a substantial amount of their waking hours to market analysis and trading strategy.
- Rigid risk control is one of the key elements in the trading strategy of virtually all those interviewed.
- In a variety of ways, many of the traders stressed the importance of having the patience to wait for the right trading opportunity to present itself.
- The importance of acting independent of the crowd was a frequently emphasized point.
- All the top traders understand that losing is part of the game.
- They all love what they are doing.