Kindle Notes & Highlights
Linda Raschke,
Successful Trader
It would be wonderful if all of us found our "swing"-our natural place in life-in childhood. We would then have the luxury of pursuing our dreams and developing our potential from an early age.
Abraham Lincoln and Winston Churchill were undistinguished politicians until they found their leadership
niches during times of crisis. Ray Kroc was an anonymous salesman of milkshake machines until he bought out his best customer, a hamburger
They report that a significant proportion of skilled young athletes were born early in the calendar year. The reason for this is that, as very
young beginners at their sport, the difference in their maturation compared to peers born late in the year was noticeable. This led parents and coaches to consider the early-birth children as talented, encouraging them to funnel those children to enriched performance environments. By the time the children were older, the gap between those with
Jim Dalton, author of Mind over Markets and Markets in Profile, recently stressed to me, "Traders need to understand how they arrive at decisions: the role the analytic and synthetic parts of the brain play and the merging of those two. You can't assess risk without emotion, but you can get too wrapped up in emotion." Each of us has a different way of merging the information from explicit reasoning
Mind over markets book
Whatever your distinctive abilities might be, you are already engaging in them.
A formula for success: Find what you do well and then figure out how to do it in trading.
The question "Can anyone become a successful trader?" generally is framed within the contexts of weaknesses. The questioner feels that he might be too emotional, too undisciplined, or too cerebral to succeed as a trader. My sense, however, is that it is not the weaknesses that keep people from trading success; its their strengths.
Allow me to explain. At the moment I am writing this, I am thinking of three highly successful traders whom I have known personally. All have made more than a million dollars trading for multiple years. Each of these expert individuals possesses just about every flaw
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Can anyone trade?
They succeed because their strengths overwhelm these weaknesses. Just as we saw earlier with Mick and Al, other traders who are less emotional, more disciplined, and more systematic may fail because they lack strengths that readily translate into trading edges.
The Essentials of
Trading is an excellent resource-and a sports coach at the university level, Forman understands traders' mentoring needs. He realizes that it is not only the
Mentoring resources
Perhaps the best example of such informal mentoring is Woodie's CCI Club, whose motto is "Traders helping traders."
A competent trader is one who consistently covers his or her trading costs.
• An expert trader is one who makes a consistent and acceptable living from his or her trading.
Real Trading Costs
Changing markets and the law of averages dictate that slumps will occur. A historical look at even the best-performing hedge funds, for example, will reveal periods of significant drawdown. Resilient hedge fund managers, confident in the validity of their methods, view such drawdowns as inconveniences, not as threats.
Drawdowns
Trade expert website
