What is the One Thing Every New or Veteran Trader Must Have?

[MadMarketScientist 11]

If you were to put together a top 10 list, or just one single thing that a trader should have to be successful what would those be?

 

While I could come up with a laundry list of things here's a couple of thoughts...

 

1. A back-up internet source. You always think your internet won't go down but it does. No matter how good your cable modem is, there is a reality that at some point while in live trading you're going to lose your internet. What would you do? If you're a beginner, you might panic - that's ok - I have. But I always remind people #1 put the phone number of your broker by your computer. Seems basic right? But how many of you have done it? Remember, when that internet goes down you can't Google search it to find it -- and I personally would have no clue how to get the number to my broker (IB) if I didn't have it written down. It's not like I get mailed statements anymore.

 

Then, have a back-up plan in place. Back in the day, ok, quite a few days ago I used to have dial-up as a back-up. Scary to even think that but there was a time. These days I have a Verizon Wireless Broadband modem. I've got the one that can turn your home/office into a Wifi zone. I've used it when I travel, on a cruise ship, at the airport, etc... but it is also my back-up in the even the internet dies on me. And, I can get it running in just a minute or two.

 

2. The very best charting platform you can afford. Too often people look for "free" and then wonder why their data is inconsistent or not available, whey the are so limited with indicators or timeframes available. This is one place you should not take a short-cut and many times if you combine it with a broker you can get these platforms for free anyway or highly discounted. Just don't forget you're still likely paying exchange fees so it's not going to be totally free....

 

 

What are yours?

[BlowFish 10]

Not sure I completely buy into those MS. I have known a few people that have traded with hand drawn charts or even without charts, depends somewhat on your perspective. Trading simple price action from 5 minute bars doesn't require much in the charting department. Most retail stuff is fine unless you want to get into per tick analysis and then you are likely to hit a wall with most without some tricky programming. Neoticker being a notable exception that springs to mind.

 

I guess the days of phoning orders in has pretty much passed but whilst having decent internet is a pretty good idea again depending on your approach it might not be that important. (For example 'swing' trading using market on open orders). Having said that for most traders this is likely to be pretty important

 

Personally I would go a bit more existential....1) self discipline and 2) Honesty 3) Tenacity perhaps.

[SIUYA 11]

A real desire to actually do what its required to succeed in the style of trading adopted.

 

example; I dont really want to day trade as I dont want to spend all day in front of a screen watching it for a few trades. I want to swing trade over a few days, and also long term trade. So I should not spend my time looking at and analyzing less than 60 min charts. (even though sometimes I do )

 

You need to understand why it is you want to do something, and then focus on how to achieve that. A half assed approach is unlikely to work.

[TheDude 10]

I traded with a wirless mouse once. Big f*****g mistake! I've no need to tell you at exactly what point the batteries decided to die on me, leaving me panicking for what seemed like 15 mins (probably 15 secs) on whether to scramble around in the drawer for new batteries or call the desk to cover.

 

Ouch!

[MadMarketScientist 11]

TheDude - I've been there! Talk about a panic. Another time I was traveling, and using IB and Ninja I do a lot with the middle mouse button. Never though that I wouldn't have that readily available on my laptop. Oops. Nothing worse than being in a trade, having no ability to use that button and madly searching the laptop to figure out how to turn that on. So lesson there might be if you are going to travel and trade on a laptop go through all the motions at home first and make sure everything is set-up to work perfect.

 

I can say I've used Gotomypc many times and actually traded off my home office PC remotely and that has always worked fine for me. Seems kinda crazy in theory but it hasn't failed me -- it's a touch slower than being there, and it does depend on your internet connection. There was a time I was in an internet cafe, 100 degrees in there probably running at 28K -- not so good that time.

 

I think I've traded long enough to run into every problem possible. They are funny now looking back. At the time I was probably weeping.

[Spydertrader 10]

If you were to put together a top 10 list, or just one single thing that a trader should have to be successful what would those be??

 

 

 

In a word........

 

Discipline.

 

Having the discipline it takes to keep after your trading education after putting in long hours to study, prepare, test, analyze and review the rules, software, trading vehicles and systems before ever placing your first trade.

 

Having the discipline to start with small sizes as you continue to learn and trade.

 

Having the discipline required to wait to trade real money with maximum leverage until you achieve proper capitalization for your trading goals.

 

Having the discipline required to remain patient while waiting for the most opportune time before entering a trade.

 

Having the discipline to exit a trade and take a loss when the market tells you you were wrong this time.

 

Having the discipline to exit a trade when you reached your target by not permitting greed to influence your decision.

 

Having the discipline required to control your emotions before, during and after a trade.

 

Having the discipline to follow your well tested and proven trading system rather than override it simply because "you know better."

 

Good Trading to you all.

 

- Spydertrader