Posts Tagged ‘great trading’

Are Great Traders Born or Bred?

Tuesday, November 2nd, 2010

In times of volatility, stick with you plan.

In times of volatility, stick with you plan.

In a recent speech to a class at Harvard Business School Mark Sellers, founder of Chicago-based hedge fund Sellers Capital, argues that great traders are born and not bred. He believes that there are seven “structural assets” that cannot be taught, adding, ” They have to do with psychology. You can’t do much about that.”

The traits:

1) The ability to buy when others are panicking, and vice versa

2) An obsession with the trading game

3) A willingness to learn from past mistakes

4) An inherent sense of risk based on common sense

5) A confidence in your convictions and a willingness to stick with them

6) An ability to have “both sides of your brain working” (i.e. to go beyond the math)

7) The ability to live through volatility without changing your investment thought process

I  think that some of the concepts discussed here are spot on (and I spend a great deal of time hammering home the importance of #7) , but I disagree with the overall idea that great traders are born, not made. I believe success in trading is not about a specific style, but rather about understanding your personality traits and then developing a trading style (and which product - i.e. stocks, commodities, fx) that fits you best.

We are who we are. That does not change throughout our life, but we can learn to wait for times when the market is paying our personality type and then generate successful returns when that window of opportunity appears.  Trade well, Dr Doug Hirschhorn

Volatility creates Opportunity for Traders Who Can Look Past the Noise

Friday, May 7th, 2010

The Difference: Mediocrity vs. Greatness

Tuesday, March 2nd, 2010

In Trading, the STATISTICS show that smarts, experience, etc. are not the differentiating factor.
The BEST (most successful guys I know and work with) have winning %’s of less than 50%.. actually, the average is between 45-55% but the point is, basically, winning percentages don’t matter – so they might as well be a random event.

So, what does make a difference?

  • CONVICTION in ideas
  • INTERNAL CONFIDENCE
  • TRUSTING YOURSELF
  • GETTING BIG IN TRADES you believe in
  • LETTING WINNERS RUN
  • CUTTING LOSERS QUICKLY
  • SWITCHING DIRECTIONS QUICKLY

These are many of the factors that allow some people to become monster traders over time. It’s not my opinion, just my observations.

Trade Well,
Dr Doug

Becoming Great

Thursday, January 21st, 2010

Everyone likes the idea of becoming great. My elite Wall Street clients who are already great traders, want to increase their greatness factor. As Dr. Doug, I have built up a substantial consulting practice, media presence and just released my second book 8 Ways to Great (Penguin/G.P. Putnam’s Sons, 2010) – and I now want to take my brand of finding greatness, to the next level. I am talking about the global level on par with Tony RobbinsWayne DyerJoel Osteen and even Oprah.

What about you? What do you want? Maybe you want to increase your greatness factor as a parent? A spouse? A friend? Or you want to live a greater life by improving your fitness or diet? Or maybe you just want to increase your self awareness and eliminate mistakes so you can stick to your goals?

I have been thinking, struggling, at times, sleepless and tormenting with HOW to crack and leverage the online social network so that Dr Doug – the coach to the Elite – can become a household name synonymous with finding your inner greatness.

My greatest critic and supporter (my wife of 10 years) sees the look in my eyes and reads my body language when we talk about what it is going to take to try to make that career building goal happen. The contacts I have to pursue, the relationships I need to explore, the tremendous effort – all while continuing to grow and maintain my current trading psychology coaching business. Oh, and did I mention, I have three incredible young children whose smiles make me realize what greatness really is?

Yes, I feel lost and scared and insecure – just like you. Yes, sometimes, I say to myself, maybe I should just slow things down and enjoy the NOW rather than pursue this global Dr Doug brand.

The list grows and grows each time we talk about it. And my body language says it all – it says, “Yeah, I want to build that brand and reach that goal of being the coach who helps people find their inner greatness…but am I really willing to do what it takes to make that happen. Because if I was, then the body language would be energized rather than flattened.”

I never doubted (at least not for the past few years) as to whether I could make it happen; but I do find myself wondering if I am really willing to make the personal sacrifices that are necessary to give myself the chance to find my inner greatness. I know first hand the kind of sacrifices that will be required along the way. I see it first hand with my elite wall street clients who I coach to becoming even greater traders. And many of those sacrifices they make along the way they never get a second chance at because time moves on, kids grow up, and seasons change.

Is it worth it Doug? Will it be worth it when you look back 30 years from now? Are you sure this is what you want from your life? And if so, are you willing to do what it is going to take to make it happen?

If you find yourself in a similar place, determining the different between Wanting to do something and if you are really WILLING to do what it will take to make it happen, then here are three things I discuss in 8 Ways to Great that I think you should consider when weighting this decision.

1)   Fear is OK.

Openly talk about your fears either to yourself or to a trusted resource. The more your express and identify your fears, the less of a barrier they become in your life. Remember, fear is normal and ok to feel. All that matter is that you do not make decisions based on that fear. For example, just because you are afraid of all the work that it will take to reach your goal is not the right reason to not go for it. So, identify the fears, greet them with open arms and then put them in a box so they don’t get in your way.

2)   Take a Process Approach

List all the things, that you need to do in order to reach that big goal. Then just pick 3, start there and do not move on until you have completed them; then pick 3 more and so on. By focusing on the process, you break down larger, more intimidating goals into smaller more digestible pieces. At the end of just one week, you will have worked your way through a good number of the items on the list. This will then give you hope and energy to keep moving forward.

3)   Focus more on WHY

Spend some time figuring out why you really want to achieve that goal. Most people only think about how they are going to get there or lose the weigth or find the time. Instead, ask yourself WHY you want to do it and if the WHY is powerful enough to you, then you will find that the HOW takes care of itself and you will be moving from Wanting to achieve a goal to being Willing to do what you need to do to make it happen.

Go ahead and find your way to Great!

Dr Doug