Moving this from Trading Psychology to this thread: A question about the qualities of superior traders. Here is the post:
Thank you, Cooter! I would rank discipline right up there with personal responsbility. Disicpline includes the ability to stick to a plan and not be hijacked by too many destructive emotions. It includes the most important aspect of capital preservation which is cutting losses. This implies that the trader is not so biased and fixated on a certain belief system. He or she is very flexible and is able to cut losses when the position goes sour. So many traders do not have this ability, as you are well aware. The inability to admit mistakes and cut losses coupled with the common practice of taking profits too soon ( cutting winners and letting losers run) is part and parcel of trading discipline. Also, I will discuss later other aspects of capital preservation, since capital is not just financial. Capital is your energy-- financial, mental, emotional, physical, and spiritual. Drawdowns drain each of these types of capital.
Thanks!
Doctor Janice
janice@thetradingdoctor.c om