What Makes a Good FX Trader?
Approach, discrimination, management and attitude are the four pillars of investing success. But everything begins with attitude because without the proper attitude, you can expect to get a failing mark from your very first foray and most likely never have the opportunity to rise from the ashes like the phoenix. Thus, you can say that attitude is everything.
For even if you have approach, discrimination, and management, none of these are enough when you’re lacking the attitude portion. Attitude-wise, there is really no magic formula to the business of triumphing in the buying and selling of stocks. In fact, it is an open secret. The same qualities that are found in people who rise above the ranks in The X Factor, The Voice, Big Brother or Survivor can be found in the happy and successful investor. For starters, if you give up easily or are easily discouraged, you will fail trading miserably just as you will fail other high-pressure and extremely competitive disciplines.
To illustrate, a superlative hockey player can dabble in basketball or golf and succeed just as well. This is because it takes the same attitude to succeed in competitive sports, trading, your love life, and even your family life. As the popular saying goes, when you need a job to be done, give it to a busy person. Broken down, attitude consists of persistence, patience, discipline and determination. Successful stockbrokers are not quitters. Neither are they reckless individuals who like to lose.
In Warren Buffet’s own words, losing money is not an option for long-term trading success. And yet many people around the world persist in taking chances or risks without calculation. This is where approach and discrimination come into the picture. Approach means that you must always have a strategy when undertaking anything, be it courting someone, landing a date, or getting a new job. Albert Einstein comes to mind, who once said that doing exactly the same thing repetitively despite failing every time is very sad, indeed. Charlie’s Angels put it succinctly when the power women of 1970s television epitomized always having a Plan B.
Lack of discrimination simply means jumping from a parapet to a turret without knowing the difference. Call this crazy or delusional and yet avid speed readers do this all the time without a care in the world. Transplanted into the stockbroking circle, this vicious habit would be trading persistently without being able to recognize the forest from the trees.
In other words, the hapless practitioner is learning by rote, just trying to mimic the experts without fully understanding why they are doing what they are doing. Definitely another pathetic thing to do, from Buffet’s point of view. So remember the triad if you want to make investing your home. Attitude, approach, and discrimination are the trilogy of the money market. Just mastering all three without regard for management is enough to ensure early success for an investment newbie. So for starters, focusing on the three items are the 20% of the activities that could bring in 80% of the results.
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