Backgrounds of Successful Traders

[pkfryer]

I think previous occupations (or hobbies) where pure logic without emotion would help more than anything else. Logic, reasoning and a creative flair. The ability to look at something and deduce a pattern. Formulate hypothesis and test them. Construct trading systems etc.

So I would say people from a scientific, engineering background would be more attracted, and possibly successful at trading. They are use to using their minds rather than their instinct, but are still able to creatively form new ideas.

The other trait which I think is very important is the ability to understand the human psyche. As the market is nothing but a bunch of humans in a crowd. If you understand how the human mind works as an individual and in a crowd, you will be a good way towards understanding the market too.

There is no coincidence then that there are a high number of software engineers in to trading, and there are a disproportionate number of traders involved in psychology/psychotherapy.

 

[TheBramble]

While I think there IS a bias to certain 'types' (as pkf alludes to above) being attracted to trading, the point is that it's not what someone 'once did' that makes the difference. Being attracted to trading and being a successful trader are quite different things.

It's the transition from what you once did to becoming a trader that determines the successful ones.

Those that can learn quicker than they can lose are, by definition, the successful ones. And their previous incarnations of little importance I suspect.

 

[counter_violent]

Competitive game players will probably do very well, Chess, Poker, Risk, individuals who get a buzz from the victory knowing they have got one over on the rest by springing a well thought out plan.

What of the losers i hear you say, well they may become more competitive and resolved because of the losses. Work that much harder to get to the top and enjoy their own victories !!!

Makes perfect sense to me

counter

 

[henry766]

of course we could always work backwards, what did soros do for a crust back in the day?

 

[roguetrader]

I think previous occupations (or hobbies) where pure logic without emotion would help more than anything else. Logic, reasoning and a creative flair. .

i would have said applying logic to the market is the first step on a road to nowhere. Logic imho has absolutely no place in the market. If logic played a big part then you could anticipate the markets reaction to news events, fact of the matter is you can't, as any experienced trader will tell you, it's not what is in the news but how the market reacts to it that matters. Apply logic and you will apply a bias, when in fact you should take your bias from the market.

 

[JumpOff]

I'm surpised no one has mentioned research scientist. The ability to adjust your opinions to fit reality would seem to be a useful skill.
JO

 

[trendie]

how about an actuary ?

roguetrader / JumpOff;
the problem with logic, is the assumption that if A acts on B, C is the result.
when in trading reality, C will result in 36% of the case, as an example, D will result in 27% of cases, E will result in .... etc

even a research scientist may think that if he understood ALL the variables, he cannot be certain of the outcome on any single event, but his results have to be seen in context of a series of results.

I think an actuary will have the conceptual framework to understand that trading patterns or events may happen, but in the context of probabilities, and may also understand the nature of Bell curves, standard deviations, etc.

 

[wisestguy]

scientific types believe in finite results and methodologies , that the markets are basically one giant equation which can be solved mathematically .

biggest load of bull I ever heard , news to them, but the market is made up of and moved by humans with all their non locigal , non math failings . hence the market never behaves logically or scientifically.

 

[trendie]

scientific types believe in finite results and methodologies , that the markets are basically one giant equation which can be solved mathematically .

Is this a reference to LTCM, the trading company run by two Nobel prize winners ?!

How much did they eventually lose ? I forget !

 

[Roberto]

what did soros do for a crust back in the day?

He was a professional Hungarian.

 

[roguetrader]

How about a criminal psychologist. Plenty of crim's in the market place.

 

[fudgestain]

Trendie, its not really any of the categories you mention in the opening post. Wage earners would be the natural losers .. no safety or security initially in online trading. For them its all dreaming without either the aptitude or long term study needed to become the big winner.

The winning category is the problem solver. This would be the same guy, real time, real life in a car facing an imminent crash through no fault of his driving who can make the mini micro second computations along with instant cold courage for the best play to avoid that crash or minimise that crash to his benefit.

More generally problem solving is about understanding the market and solving its requirements to win. You can't do this at all with various 'fixes' or 'edges' talked about on numberless threads or with borrowed ideas/plans either. You have to study the data and be patient to assemble and understand the requirements for play. It is a very professional approach.

Its about the numbers in the market you play in and I use a statistical model of templates. I've had a background in the City, futures NY and London and highly successful management in my very early career all before becoming and staying my own boss.

But I welcome all newbies; it is life to have a shot, take off and be shot out of the sky.

 

[ardhill]

of course we could always work backwards, what did soros do for a crust back in the day?

I am not 100% certain, but as far as I can remember. He managed to get into merchant banking after a lot of trying where he failed miserably.

He talks about it in his tapes "Ahead Of The Curve"

But, he knew what he wanted and persisted.

 

[Tuffty]

wisestguy said "the market is made up of and moved by humans with all their non locigal , non math failings . hence the market never behaves logically or scientifically"

Isn't 'Behavioural Science' the scientists way of logically explaining the markets? When they've worked it all out the can then formulate one giant equation that explains all!

 

[TheBramble]

of course we could always work backwards, what did soros do for a crust back in the day?

George Soros is the son of the Esperanto writer Tivadar Soros. Soros was born in Hungary and lived there until 1946, when he escaped the Soviet occupation by participating in an Esperanto youth congress in the West. (Soros was taught to speak the language from birth.) As a young man, Soros traded currencies in the black market during the Nazi occupation of Hungary. Soros was fourteen when the Nazis invaded Hungary and he avoided the fate of many Jews as the grandson of a Hungarian official overseeing the confiscation of Jewish properties, who was assisted by his son-in-law, Tivadar Soros.

Soros emigrated to England in 1947 and graduated from the London School of Economics in 1952. In 1956 he moved to the United States. He has stated that his intent was to earn enough money on Wall Street to support himself as an author and philosopher. His net worth reached an estimated $11 Billion.

http://en.wikipedia.org/wiki/George_Soros

 

[henry766]

soros will have a job making a living as a writer , i know he's written a couple of books but they didn't go down too well considering his trading rep, he's so complicated he could almost be mad, none of the simplicity of Einstein , besides apparently he hasn't made any money for quite some time , claimed it was cos too many people had read his books ( fat chance), i think he just got old!!!

 

[maxpain]

If you start your career with a couple of years losing money you´re on the wright track. Read all you can and don´t listen to the advice you get in the Business Magazines or the Internet forums. The recommendations you get is to buy when the stock is technically ready for a drop. Have seen it many times. How wright where the analysts within tech stocks early 2000? None! Reading and paper trading are ways to get started with. TA is the most important tool as long as fundamentals doesn´t matter. Who trades without his charts?

 

[donaldduke]

Soros used to sell Ice cream on the beach when he was in the UK (that would be about 50
years ago),
i remember him admitting to something along those lines in a BBC2 interview he gave
about eight years ago, although i cant find any trace on the internet.

Well i suppose that proves trendies theory that Salesmen make good traders!

 

[Roberto]

soros ... he's so complicated he could almost be mad, none of the simplicity of Einstein

As I said ...

He was a professional Hungarian.

 

[ardhill]

Reading and paper trading are ways to get started with. TA is the most important tool as long as fundamentals doesn´t matter. Who trades without his charts?

Is that piece of advice not contradicted by this piece of advice?

Read all you can and don´t listen to the advice you get in the Business Magazines or the Internet forums.

Couldn't resist