I just wanted to pick everyone's brains on the question of the profile of a "potentially profitable trader". By this I mean that we should assume someone that has never traded before but wishes to learn about day trading in the hope of making it a profession. What questions should we ask this newbie to determine if she/he has the 'right profile' to eventually become a successful trader? Are there personality traits that we should be looking for? Are there specific values or attitudes that are must-haves? If 'behavior predicts', what elements of their personal or work experience should be evaluated? Are there specific skills that are needed? Any ideas?.....I was asking these very same questions to the owner of a prop trading firm that I met a couple of weeks ago and he could not offer any insights. I would have thought that for someone whose business it is to hire traders, some of them with no experience, that this 'profiling' would have been established. Instead he told that that they gave everyone a short but that his business was a 'revolving door'. Is that the only way of finding out if someone has the potential to succeed in day trading?
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Boris Schlossberg wrote a book on this topic, which I didn't read, but I saw an interview where he said the common trait he found with all of the successful traders he interviewed was that they were athlethic. He surmised that exercising and eating healthy required a high level of discipline that also carried over to their trading habits.
Good subject . In my experience the only profitable traders were actually equity investors/traders that were business owners ( current and retired) and self thinkers , independant types . I dont actually know any daytraders or scalpers that have made a living from it . I do know lots that have talked about how they were going to make it in that game and when they stopped talking about it I knew they went broke already .
The self thinkers I know that do produce an income from the market all trade stocks or options and are well capitalized but are very careful with their trading and spend lots of time on the sidelines . I am a member of an IBD meetup group and these folks always participate . Its pretty obvious its the way these people think that leads them to success and not how great they are at being an analyst since I never hear them giving an opinion about whats going to happen next and they act not react .
Well what I definitely agree with is that day trading is a performance field, just like athletics. It is also all about practice ("perfect practice makes perfect" as Lombardi said), repetition, discipline, and resilience. This being said it would therefore make sense that people who have demonstrated these traits in athletism would be well positioned to transition to trading. I was looking through Schlossberg's book on Amazon, do you know which one would cover this topic?
Talk about spurious correlation...geez.
If alot of traders are athletes I imagine it has far more to do with being ultra competitive than with actually being an athlete.
Surely though traders come in all shapes and sizes but it doesn't even make sense to even think in terms of a non competitive trader .Without a borderline psychotic will to win you have almost no chance of not dropping out.