Have been reading up on trading psychology, can someone define on who a trader is, and/or what makes a trader?
2 Likes
Was reading this link yesterday on Daily speculations. Check out the answer by Sushil Kedia ( president of ATMA), quite interesting:
A trader is that economic agent who hazards the future most fearlessly and who also gives the most attention to history. Balancing these two large vectors over stretches of time, the trader is also therefore the economic agent who responds to the present moment with the highest alacrity.
A trader is that economic agent who minimizes differences in prices over different places and over different times. Therefore, a trader is that economic agent whose profits come, not at the expense of others, but truly by creating utility of time and utility of place.
A trader is that social agent whose goal is to steer clear of opinion and place his bets on expected facts. Trading activity has the largest incentives arising from anticipation and therefore a trader is that social agent whose responsibility it is to anticipate better than everyone else, including the governments.
A trader is that thinker and that doer, whose mandate is to not allow his train of thoughts to execute actions at a positive relative velocity to reality. A trader's mandate is to reach the least possible relative velocity to reality. Therefore traders are those economic agents whose incentives arrive from achieving the least distortion perception of reality. Trading therefore, is a profession exercised by those who reflect reality sooner and better than all other social and economic agents.
A trader is one who can despite the credentials to live in ivory towers, chooses to hobble down on a cane when all others have broken theirs.
A trader is the one who knows better than all other economic agents when to hold them and when to fold them, whether playing cards or economic bets.
A trader is the one who pays least price by way of humiliation brought about by adverse economic events, since a trader has learnt already that the most powerful currency is humility even in environs that are favourable.
A trader is that rare scientist who is most conscious of and regularly experiences the changing velocity of time.
A trader is that artist who envisions form in formlessness and formlessness in form.
A trader is the one who despite all of these rare skills and attitudes as enlisted here above, is still a human being that makes mistakes and learns from them.
5 Likes
Great stuff NIthin…