Trading Attributes

There are many different personal attributes that go toward forming a profitable trader. We will discuss a number of attributes, a successful trader should possess a combination of all of them.

Reality of Trading• The longer something trades at a single price,

the less value that position has• The market trades through the point of least

resistance• If there is paper orders in the market with

large volume, when it trades out over an extended period, it will trade through the next price quickly

• Always question whether the reasons why you first put on a trade still exist

• What is the risk reward from the trade• If something trades in massive size, 90% of the

time, it will trade out even if it looks good initially

• Always go with the movement

Mental Toughness

“Mental toughness is judged by the speed in which a trader can recover from losses and mistakes within a trading session; how quickly they recover from larger losses; and the ability to continue trading while going through a prolonged period of losses or bad performance and then eventually turn things round”

5 components of mental toughness

• Self confidence

• Focus

• Composure

• Resilience

• Motivation

Self Confidence• An unshakeable confidence and self belief is

critical to trading success. Not only is it important in being able to execute your trading strategy effectively under pressure, and being able to perform to your potential , but also in being able to stay confident after losses, setbacks and errors

Focus

• Your ability to focus on what is important-the right thing at the right time and being able to block out everything else, is one of the primary keys to trading success

Focus - Tips• Tune in - identify the key factors that affect

trading performance for you in different situations and actively work on directing your attention to these

• Focus on the process- and not the P&L. The time to think about P&L is after the process

• Plan to re-focus - Events such as a series of losing trades, a big loser, a losing day etc can be a distraction and cause loss of focus. What do you do in this situation? How do you refocus?

• Manage your energy -To maintain high quality concentration throughout the day ensure that you get good quality and quantity of sleep, eat a nutritious diet, exercise, stay hydrated, and ensure plenty of time to relax.

Stay Focussed !!

Composure• Without the ability to stay composed and in control

under pressure, traders will not be able to achieve their full potential.

• An extract from Rudyard Kipling, his poem IF: “If you can keep your head when all about you are losing theirs”, could be the motto for all profitable traders.

Resilience

• Bounce backability!!!- It doesn’t matter how many times you get knocked down - just as long as you get up one more time than you were knocked down

Resilience - Tips• Build physical resilience - sleep, nutrition,

exercise, relaxation• Accept losses are part of trading and that set

backs and challenges are a part of achieving any challenging goal

• Keep perspective - imagine the number of trades that you make every year. Every one trade equates to approx 0.02%, that you will trade in a year

• Learn and move on. Know that every trade, every loss, every mistake, every set back has something valuable in it

• Recreate success - When you want to boost confidence, replay in your mind some of your best ever trades. By recalling positive experiences, you will change your mindset and your emotional state.

Motivation• Motivation is the fuel that will drive you to the

successful completion of your trading goals. Without adequate motivation a trader can be stuck with what is known as “permanent potential”.

• It is important that you are aware of your trading motivations and you should strive to meet your motives through your trading

Humility

Always be aware of your peers when discussing trading performance. It is unlikely that a trader who has just incurred a large loss will be very receptive to hearing about your latest “winner”

Communication

All traders have different personalities.

Market commentary can be valuable and useful, but equally dangerous and/or annoying, if used without proper consideration.