Q&A by Don Bright
FROM DON: TRADERS' PERSONALITIES
Recently, I was asked about new traders’ success. So often people think about all the technical information available and fail to appreciate one of the most important aspects of becoming a successful trader: personality traits.
Personality has a lot to do with new traders’ ability to grasp and properly execute market mechanics. What seems so natural to many long-term traders seems alien to novices. We try to explain what makes stocks move, and we try to show by example.
Even with all this, a lot boils down to (yes) the personality of those new to trading. For example, a Ceo from a Fortune 500 company may delegate some of the learning process or not bother examining the particulars of, say, premium/discount to fair value and why the stocks will follow suit. They may not take the time to understand why pivot points work (often technical, always self-fulfilling). Then the new trader who has taken time to immerse themselves in the “why” of how things work will learn more quickly. One fails, one succeeds, but only one of them chooses to learn the how.