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

1.8. THE PERFECT CANDIDATE?

Is there really an ideal candidate, one who has all the "perfect" ingredients I have outlined in this chapter and throughout this book? Perhaps; but it should also be noted that some very successful people have only a few of these traits. The goal is to look for people who have as many of these characteristics as can be found. I am also advocating that other people develop some of their strengths along these lines. But, it is still important to recognize that some people have the X factor, and though they might not meet my idealized criteria, they might nevertheless be quite successful at trading. As with most of my books, this information is presented as a set of useful concepts from which to judge your own experience and what you need to do to improve your selection of PMs for your firm or improve your game if you are the PM yourself.

I think it is also important to understand that each person has his or her own style of trading and preparation. Clearly, when you look at people who have been successful over the years, you find a variety of profiles. Indeed, the more profiles you review, the more you realize the complexity of personalities and the value of digging deeper, exploring the potential fit of people you hire into your organization.

I recognize that there is not one single personality profile that is correlated with successful investing. Some people are strong in abstract reasoning and mathematics. Others have a gift for intuitively reading ...