What separated traders like John Arnold and Steve Cohen from the rest? What skills and qualities?
Please keep your answers more technical than soft. We know they were smart, risk taking, and read a lot of books, etc.
Unfortunately, everybody believes that a successful trader always has a secret Technical Skill. But the truth is Technical skill is the least important factor to be a superstar trader. Then what separates a great trader from the group of average traders?
Its their emotion.
Trading is the only profession where you can see Doctors, Engineers, and many other successful professionals try their luck with stock market, these people excel in their own respective field but struggle a lot when it comes to trading.
The successful traders have an amazing emotional discipline to follow their trading rules no matter what. They have a strong conviction with their trading decisions, they dont keep changing it and doesn’t react much with market fluctuations. John Paulson is one of the best example of a greatest trader who made billions due to his strong conviction about his trading decision.
If you have read this book, you will understand why emotion or trading psychology is more important than any other skills. If the you dont read the book, I would recommend watching the movie The Big Short.
So the key to be a successful trader is just one thing “Emotional Discipline”
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