Characteristics of Successful Traders

Psychology and intelligence plays an important role for successful traders. It is imperative for struggling and unsuccessful traders to overcome their weaknesses to win by trading the share market.

In terms of necessary intelligence skills, in Turtle Trading, the candidates were tested for their mathematical aptitude as well as the ability to think in terms of risk and probability. Finding an edge in the market and learning whether a trade is worth trading and risking your capital requires a little mathematical skill.

Traits of Successful Investors and Traders

The following traits are mostly psychological qualities which successful traders and investors possess. Your thoughts and feelings should always be in check whilst in the markets as it is the psychology of the all the traders in the market which move the market.

• Self-Discipline
• Knowledge
• Decisiveness
• Positive Mental Attitude; Passion; Self Confidence
• Consistency
• Self-Control; Discipline
• Concentration
• Persistence
• Patience

Habits and Abilities of Trader Success

Traders which attain success live their life with certain habits and abilities:

• to be decisive
• emotional detachment from the price action of the stockmarket
• creative and independent thinking
• accept responsibility for trading decisions
• self control
• evolve and adapt quickly to changing market conditions
• effectively manage stress levels
• development of insight in various market conditions (up, down and sideways markets)

Books about Successful Traders

The Psychology of Investing

In "The Psychology of Investing" by Colin Nicholson, he breaks investors down to three temperaments: Unpleasant or Pleasant, Arousable or Unarousable and Submissive or Dominant. From the different combinations of these temperaments he then labels each trader as either: Exuberant, Dependent, Relaxed, Docile, Hostile, Anxious, Disdainful or Bored.

Nicholson concludes that Relaxed (Pleasant, unarousable and dominant) and the Docile (Pleasant, unarousable and submissive) are the most suited to successful investment.

Turtle Trading Traders

When Richard Dennis interviewed candidates for his turtle trading program in the 1980s he presented them with a set of questions. The questions tested the prospective candidates on their belief systems as well as their mathematical aptitude.