One of the topics of my presentation volition live on an interactive exercise designed to aid traders identify their distinctive strengths. Recent posts receive got dealt amongst the importance of a procedure orientation to trading, precisely how tin traders construction their processes to maximize the odds of success? My experience--and the findings of Schwager inwards the Market Wizards books--is that successful traders differ significantly inwards their approaches to markets. Some are shorter-term; others are longer-term. Some are to a greater extent than fundamentally grounded; others merchandise off cost as well as majority data.
It is non the presence of whatever *specific* procedure that distinguishes successful marketplace participants. Rather, each has flora a way to engage markets that makes specific role of his or her emotional, cognitive, as well as interpersonal strengths. Nowhere is this to a greater extent than evident than inwards the information processing approaches of traders. The processes of traders amongst distinctive intuitive strengths are dissimilar from those of traders who are highly analytical. Extroverted traders ofttimes run good inwards teams as well as procedure information interactively. Introverted traders are to a greater extent than self-reflective as well as analysis-driven. Many short-term traders focus on pattern recognition; many long-term investors assay causal relationships.
A crucial query for peak functioning is: What are you lot actually practiced at? If you're going to succeed equally a trader, it volition because you've flora a way to accept signature strengths as well as apply them to fiscal markets. It's hard to imagine anyone could live on distinctively strong inwards their marketplace functioning if they are non drawing upon their ain distinctive talents as well as skills.
So here's a useful exercise: Draw a serial of sine waves amongst regular peaks as well as valleys. For each of the peaks, position ane of your distinctive life successes outside of trading as well as write downward the strengths that made those successes possible. Make certain you lot position at to the lowest degree 10 peak experiences as well as at to the lowest degree 10 nub strengths.
Then, for each of the valleys, position ane of your distinctive life failures or setbacks outside of trading as well as write downward the vulnerability that made those setbacks possible. Again, brand certain you lot position at to the lowest degree 10 setbacks as well as vulnerabilities.
What you'll by as well as large detect is that it is hard to position 10 real distinct strengths or vulnerabilities: the same ones tend to recur throughout life experience. One way you lot tin come across that clearly is to do the exercise a 2d time, precisely this fourth dimension allow the peaks stand upward for your best trading experiences (and the strengths that contributed to them) as well as allow the valleys consist of your worst trading experiences (and the contributing vulnerabilities). The odds are practiced that the lists volition live on like for the 2 sets of sine waves.
What that way is that success is highly subject upon playing to our strengths as well as avoiding our vulnerabilities. Indeed, the best processes are those that leverage what nosotros do good as well as minimize what nosotros don't. Many, many times traders do non attain their potential because they never come upward to a deep appreciation for their almost basic strengths as well as weaknesses. It is at the intersection of marketplace knowledge as well as self-knowledge that traders tin detect their greatest success.
Further Reading: Lessons From a Successful Trader
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