The Common Elements Of Success

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The Common Elements Of Success

Van Tharp

Markets poised to move down after Mutual Monday
Trading Strategy psychology and market patterns
Markets poised to move down after Mutual Monday
Markets poised to move down after Mutual Monday

From time to time I have been asked to offer
my perspectives on things I have found
common in successful traders. I have always
struggled with my reply to that...

From time to time I have been asked to offer my perspectives on things I
have found common in successful traders. I have always struggled with
my reply to that question because there are only a few traders of which
I have gained enough understanding of what they do every day to
achieve their results.

However, in Van Tharp's latest book "Super Trader," he provides 10
common characteristics frequently found among the best of the best
among the hundreds of traders he's worked with throughout his career.
Like me, I think you may find it of interest!

They all have a tested, positive expectancy system that's proved to
make money for the market type for which it was designed.
They all have systems that fit them and their beliefs. They understand
that they make money with their systems because their systems fit
them.

They totally understand the concepts they are trading and how those
concepts generate low-risk ideas.

They all understand that when they get into a trade, they must have
some idea of when they are wrong and will bail out.

They all evaluate the ratio of reward to risk in each trade they take. For
mechanical traders, this is part of their system. For discretionary
traders, this is part of their evaluation before they take the trade.

They all have a business plan to guide their trading. You must treat your
trading like any other business.

They all use position sizing. They have clear objectives written out,
something that most traders/investors do not have. They also
understand that position sizing is the key to meeting those objectives
and have worked out a position sizing algorithm to meet those
objectives.

They all understand that performance is a function of personal
psychology and spend a lot of time working on themselves. You must
become an efficient rather than inefficient decision maker.
They take total responsibility for the results they get. They don't blame
someone else or something else. They don't justify their results. They
don't feel guilty or ashamed about their results. They simply assume that
they created them and that they can create better results by eliminating
mistakes.

They understand that not following their system and business plan rules
is a mistake.

Do any of these surprise you? Why or why not? How does your own
trading measure up against this list? What area(s) do you need to work
on the most to take your trading to the next level?



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