Confident, Persistent, and Profitable
Are traders naturally born? Can anyone learn to trade? What is the ideal psychological profile of the winning trader? At Innerworth, we have tried to find answers to these questions, but definitive answers are often elusive. We keep trying, though. We've surveyed traders and interviewed them. And we have tried to analyze interviews from Jack Schwager's classic "Market Wizards." Our conclusion: There doesn't seem to be one way to trade or one ideal trader personality. Consider Michael Marcus who was interviewed in "Market Wizards." Rather than taking a calm, unemotional approach to trading, he often seemed to fall prey to his emotions. He made large impulsive trades and lost. He sometimes let his emotions get to him to the point that he tried to use medications to gain control. His early experiences didn't permanently trip him up. He learned from his mistakes. His persistence won out, and he eventually learned to make a fortune.
Jack Schwager described Mr. Marcus as "aloof, almost withdrawn." This may be a useful personality characteristic for trading the markets. Aloof and withdrawn people tend to be focused. They may have difficulty dealing with people, but they are also likely to approach the markets with a single-minded passion to succeed. Mr. Marcus is also highly intelligent. He earned membership to Phi Beta Kappa at the prestigious Johns Hopkins University and won a scholarship to attend Clark University for graduate school. This early academic success clearly gave Mr. Marcus rock solid confidence that carried over into the trading realm. When asked, "Did the thought ever enter your mind that trading was not for you?" Mr. Marcus replied, "No. I had always done well in school, so I figured it was just a question of getting the knack of it." In our Innerworth studies of traders, we have found that regardless of whether it is succeeding in sports, academics, or business, the people who develop un wavering self-confidence as a result of these early experiences are the people who persist, hone their skills, and master the markets. Mr. Marcus strongly believed in his ability to achieve financial success. But his success didn't come easy. He admitted, "I lost. It was the same old cycle of borrowing money and losing it." Despite making loss after loss, Mr. Marcus persisted until he was able to achieve profitability. At times, he lost over five times his yearly salary, but he kept trading until he gained a wealth of experience to trade the markets profitably.
The markets are difficult to master. Many try but few make it. Mr. Marcus' "Market Wizard" interview reveals what it takes to succeed. A winning trader has confidence in his or her ability to succeed. Winning is never guaranteed and may take the stamina of a marathon runner. It is necessary to face setback after setback. You may get beaten down at times and feel like giving up. Your emotions may go up and down with your account balance. But in the end, you must believe in your abilities, and that if you put in enough hard work, you will achieve the success you have been seeking.
