Saturday, November 18, 2017

Two Things Successful Traders Are Doing

Two factors stand out among the successful traders I've been working with:

1)  They collaborate:  They find like-minded colleagues and reach out to discuss ideas, research, and performance.  That collaboration allows for a richer processing of information, as traders not only see something on a screen, but actively work with that information.  Many traders fall short of their potential because they aren't processing information in the ways best for them.  Active processing is great, but many traders excel at interactive processing.  

2)  They find multiple ways to make money:  They aren't limited to one strategy or pattern to trade.  That allows them to succeed when markets become slower or when trends are not dominant.  Many times, the discovery of new ways to succeed comes from the collaboration mentioned above.  Seeing how other traders are succeeding sparks ideas for a trader.  Imagine how successful you could be if you cultivated a fresh source of edge each year.  Over time, you would have quite a portfolio of methods for succeeding, and you could reap the benefits of diversification:  always having some methods working while others are not.

A great way to not succeed is to be isolated and locked into a single style of trading.  To go far in trading, as the proverb above suggests, it helps to go together.

So what makes collaboration successful?  What do you look for in a trading colleague?  This recent Forbes article highlights the research pertinent to teamwork and the factors that will help you effectively collaborate with others: