The Mental Strategies of Top Traders: The Psychological Determinants of Trading Success

1.7. CASE STUDY ON FINDING THE RIGHT CANDIDATE

Let's put all of this into action and consider candidates for an imaginary position. For example, imagine you are trying to find the ideal candidate for a portfolio manager's position.

1.7.1. Job Requirements

This job requires the candidate to provide in-depth fundamental analysis within his industry sector. He will develop financial models to predict company performance, assess event drivers within the sector, stay current with a range of sector companies to anticipate market moves, and be able to act appropriately in building a portfolio, sizing positions commensurate with his level of conviction and consistent with stretch targets that will be developed in conversation with the risk management team. He will work in a thorough manner, generate conclusions, and present findings with conviction. Then he must be able to populate a balanced portfolio in line with his varying levels of conviction. He should also use a proactive, instinctive approach to identify investment opportunities.

In addition, he will develop a detailed research and investment analysis process using proprietary financial models, valuation, and edge/outcome analysis as part of a streamlined approach to investment. He should be able to manage a team of research professionals and help direct the team into investment areas on which to focus. His research process should be a rigorous bottom's-up research and analysis of industries and companies to provide buy/sell/hold ...