Showing posts with label trading dicipline. Show all posts
Showing posts with label trading dicipline. Show all posts

Monday, April 5, 2010

Which is the Personality that best suits trading?

Trading is a mind game. Having said that, each trading person has different mindset or personality. The most important factors that decide the personality is Emotion and Logic of the Brain. Some take decisions emotionally, and some take it logically, while some take it partly emotional and partly logical. Some have a very disciplined mind and some don’t have that mindset.

So, which one is the best personality to trade in Stock or Commodities Market? Once a trading Guru in USA, trained both ordinary civilians and some former US Marine Soldiers. He taught them to trade in stock markets using Technical Analysis and Fundamental analysis. He trained them in short term trading in Futures and Options. He taught the students where to book profit and where to cut loss of a trading positions. After some period of time, the Guru asked the students to trade on their own in real time with real money.

The results are some what astonishing. The former Marines performed well in the trading than the other students. The Guru analyzed the results and come to know that the former Marines are most disciplined and they followed the trading rules correctly with out fail. That is, because of the discipline they used to follow in military training.

This gives the conclusion that those who follow the trading discipline correctly without any emotion is likely to trade better in speculative Markets.

Are you the one who trades with discipline and logically?