• 2024-05-28

What are the characteristics of talented traders?

After more than a decade of trading, I've encountered tens of thousands of traders, and the common belief among them is that to be really good at trading, one must have a natural talent. Look at those genius traders who can make a fortune with seemingly little effort, achieving financial freedom, such as George Soros, Xu Xiang, and the protagonist Livermore from "Reminiscences of a Stock Operator," and so on.

Of course, there will always be genius traders in this market, but the probability is usually one in ten million, or even one in a hundred million. We all want to be the chosen ones, but in reality, it's really, really difficult.

So let me change my perspective and summarize the common characteristics of the traders around me who can achieve stable profits. They may not have divine returns, but at least they can maintain a stable income, which I think is enough for us ordinary people to learn from.

Characteristic 1: Patience and a steady temperament.

Including the traders in my own team, everyone is very patient. Whether it's in the process of daily trading practice or in answering students' questions, everyone's patience has exceeded my own expectations.

Advertisement

Sometimes I ask them, why are you so patient? Don't you ever feel annoyed?

Their answers are that in trading, you are basically tormented every day. Trading is inherently against human nature. If you can persist in trading, what else in the world can challenge your patience?

I've also met friends who have their own fixed trading strategies and have achieved stable profits. In conversations with them, everyone is very calm and never engage in debates, nor do they have the desire to compete with each other over their trading strategies. We all understand very clearly that trading strategies are very personalized and are within our own tolerance range. Strategies are not about being superior or inferior; they are about whether they make money. As for how much money can be made, that's a matter of one's own ability.

This quality of patience is really, really important for trading. Let me give you an example, such as waiting for opportunities in trading. People with trading experience know that identifying the right direction and finding the expected entry point is not technically difficult. Many technical indicators can provide accurate points. But once in the actual combat, the number of people who can really wait for the market to be in place before entering and strictly control their hands is very, very few. A lack of patience is a character trait of the majority.

This is also an important dividing line between losers and winners.Patience can be cultivated, and one can learn to delay gratification in daily life. For instance, if you are fond of watching short videos, their popularity is due to their brevity, simplicity, and speed, which can quickly satisfy people's spiritual needs. They can also be referred to as a form of "spiritual opium." Once one becomes accustomed to this "instant gratification," it becomes difficult to accept more profound content.

Therefore, I suggest that everyone should spend less time watching short videos and more time reading and engaging with in-depth content. If there is something you particularly desire, you could try delaying the satisfaction for a few days or after a period of time. When you find yourself lacking patience or feeling the urge to lose your temper, you can silently recite a few phrases to remind yourself to manage your emotions. Additionally, maintaining a certain amount of physical exercise, such as long-distance running, skipping rope, or swimming, can help calm your mind and allow you to truly understand the meaning of "slow is fast."

Trait 2: Willingness to learn and diligence.

The trading market has no barriers to entry; anyone with some money can open an account and start trading at will. However, the more accessible an industry is, the higher its hidden barriers tend to be. Many people start trading without any foundation, lacking knowledge of financial markets, not proficient in trading techniques, and even confused about using trading software, thus recklessly beginning their trading journey. How could this not lead to losses?

The traders I know who have achieved stable profits are all avid readers. When it comes to popular trading books on the market, most of us have read them and can exchange a few thoughts. At the same time, we share a similar interest in philosophy, history, and biographies. Some also enjoy self-cultivation activities, such as calligraphy and gardening.

Interestingly, most of them do not consider themselves particularly exceptional but are instead very open to listening to others' opinions, willing to learn from others' strengths, and reflective and analytical about their own weaknesses.

I know several day traders who are quite diligent and do not engage in many entertainment activities in their daily lives. Day trading is quite demanding, as it requires constant monitoring of the market, pre-market analysis, and the formulation of trading plans before the market opens in the morning, so staying up late at night is not an option.

Trading is not like a job with supervision and a strict schedule; it relies entirely on the trader's self-discipline. Without a diligent attitude, it is easy to gradually lose initiative in the daily trading process. Eventually, trading becomes a mere output of fixed methods. When you lose the sense of novelty in trading, or even develop a sense of fatigue towards it, you will become increasingly lazy. Therefore, a diligent work ethic is essential in trading.

Trait 3: Good at thinking and able to detach.

I used to think that being good at thinking was not an additional ability until I realized that many people do not like to think, prefer to take the easy way out, seek immediate benefits, and follow the opinions of others within a group.Humans are social creatures by nature, and it is difficult for us to completely detach from our social nature. Just like the protagonist, Ding Yuanying, in the novel "The Distant Savior," he seems out of place in this world because he is too independent. His independence makes him seem unreal, as if he is not a genuine human being. He can detach himself from the world, hiding in a small corner, uninvolved in worldly affairs. However, no one can deny his strength. It is because he is far from the mundane world and the crowds that he can think about the world more independently, viewing all things in the world from a more global and objective perspective.

This is a kind of courage and also a kind of vision.

In my early years, I also enjoyed discussing trades with a group of people, liked to compete for superiority, and sought recognition. But after so many years of trading, that sense of restlessness has completely disappeared. The people I know who have achieved profitability can be said to be thoughtful and wise. In the process of communication, we unconsciously delve deep into the conversation, reaching the most painful parts of trading, and also delving into the philosophy of trading and the philosophy of life.

The ability to detach oneself from these complex groups and think independently is a very valuable quality. To others, we might seem sick, too unique, too strange. But only we ourselves know that right and wrong are relative. As long as we make money and live a clear and comfortable life, that is the greatest right.

In the early days, I thought trading was a skill. The more I progressed, the more I realized that trading is nothing more than a game of mindset. And with these qualities, one would not fare too poorly in any industry.

Comment