Top traders possess some innate qualities:
- Emotional Traits:
- Emotional Stability: Can maintain calm judgment during market ups and downs, unaffected by short-term fluctuations. For instance, during significant market fluctuations on March 12 and May 19, they can still analyze rationally. Statistics show that 80% of retail losses stem from emotional trading, while top traders average only 3 seconds for decision-making. They can quickly adjust their mindset after losses to avoid 'revenge trading.'
- Strong Emotional Resilience: Does not let emotions affect judgment; even under high work pressure, can focus on executing the trading plan. Losses are inevitable in trading, but they do not allow emotional breakdowns; instead, they view losses as learning experiences.
- Cognitive Traits:
- High Perceptiveness: Can see through market appearances, such as candlestick charts and capital flows, to identify market trends and potential opportunities. Many quantitative fund managers have engineering backgrounds, are sensitive to data, and can capture market microstructures through algorithms.
- Quick Reaction to Numbers: Trading involves a large amount of data and calculations; the ability to process numbers quickly helps seize opportunities and make decisions.
- Psychological Traits:
- Strong Self-Discipline: Strictly adheres to trading rules, sets stop-loss/profit-taking lines and executes them resolutely, rejecting the 'break-even fantasy.' Ordinary retail investors have an average holding period of only 7 days, and frequent trading leads to an annual loss rate exceeding 15%, while disciplined traders may have over 60% of their time in cash, only entering trades during key signals.
- Patience and Perseverance: Trading success is not achieved overnight; they are willing to accumulate experience over time and can remain resilient in the face of losses and setbacks. For example, when waiting for the right trading opportunity, they can maintain patience for long periods.
- Strong Self-Analysis Ability: Regularly reflects on trading decisions, summarizes lessons learned, and continually improves trading strategies.
- Courage and Determination: Willing to admit mistakes and take responsibility for trading losses; have the courage to place large bets when opportunities arise; can also stick to their judgment when their views differ from the crowd.
- Personality Traits:
- Extreme Focus: Stays away from external noise, focuses on fundamental or technical raw data, makes independent decisions, and avoids 'herd mentality.' Among top Wall Street traders, over 70% have traits of being solitary or taciturn, with social activity frequency lower than average.
- Risk Sensitivity: Prioritizes assessing downside risk rather than potential gains; diversifies holdings and prefers low volatility assets to achieve stable returns.