Traits of Great Traders

By Doug Hirschhorn

• Have a strong sense of self-awareness. They understand how they are

hardwired, and know what to expect from themselves—which in turn, allows
them to react calmly under pressure, because they can visualize their
response. This increases their confidence that future trades will turn out well.

• Understand that it’s not sensible to get too amped up over a winning trade, or
to get despondent about a losing one.

• Play to their strengths and recognize their weaknesses.

• Think in terms of probabilities, but don’t see trading as gambling. They view
the financial markets objectively, always asking themselves: “Where does the
greatest chance for profitability exist here?” This is the key to every trading
decision.

• Trade to make money, NOT to be right. As the saying goes: “There is no

bonus check at the end of the year for being smart.”

• Always know what their edge is. They trade only when they have an edge.
NO EDGE…NO TRADE

• Have explicit game plans in place before the market opens. It means avoiding
impulse bets; shooting from the hip is dangerous.

• Rarely think about money when they’re trading. The base their decisions on
the quality of the opportunity, not on how much money is involved.

• Keep the game simple by following well established rules of risk management,
trade entry, trade management and trade exit.