The Price speculator evolves into an automation which takes note of a situation, weighs it, decides upon a course and gives an order.
There is no quickening of the pulse, no nerves, no hopes or fears. The result produces neither elation or depression.
There is equanimity before, during and after the trade.
mental calmness, composure, and evenness of temper, especially in a difficult situation.
"she accepted both the good and the bad with equanimity"
synonyms: composure, calm, level-headedness, self-possession, coolheadedness, presence of mind; serenity, tranquility, phlegm, imperturbability, equilibrium; poise, assurance, self-confidence, aplomb, sangfroid, nerve; informalcool
"she confronted the daily crises with equanimity"
The price speculator must be self reliant. A dependent person, whose judgment hangs upon others, will find himself swayed by a thousand outside influences. At critical points his judgment will be useless.
He must be able to say : " The facts are these; the resulting indications are these; therefore I will do thus and so."
Next he must be familiar with technicalities of the market, so that every little incident affecting prices will be given due weight.
He should know the history of the instrument he is speculating; the ways of the market makers; be able to measure the effect of news and rumors and charts; know when and in what instrument is best to trade.
Measure the forces behind the moving price; know when to cut a loss and take a profit.
Trader must study the various swings and know where the market stands; must recognize the inherent weakness or strength in prices; understand the basis or logic of the movements.
Trader should recognize the turning points of the market; see in his mind's eye what is happening on the floor.
Trader must have the nerve to stand a series of losses; persistence to keep him at the work during adverse periods; self control to avoid over trading; a phlegmatic disposition to ballast and balance at all times.
For perfect concentration as a protection from the tips, gossip and another influences. Trader should , if possible seclude himself.
The work requires such delicate balance of the faculties that the slightest influence either way may throw the results against the trader.
He may say; "nothing influences me," but unconsciously it does affect his judgment to know that another trader is bearish at a point where he thinks price ought to be bought.
The mere thought, "He may be right" has a deterrent influence upon him; he hesitates; the opportunity is lost.
No matter how the market goes from that point, he missed a cog and his mental machinery is thrown out of gear.
Silence, therefore, is a much needed lubricant to the traders mind.
Money is made in trading by anticipating what is coming -> not by waiting till it happens and going with the crowd.
There is no sense in mincing words over this matter, nor in holding out false encouragement to people who are looking for an easy,
drop a penny in the slot way of making money. Trading is hard work, hence those who are mentally lazy need not apply.