What makes a good trader?

Although many skills are required to be successful in the trading business, the main ones are listed below:

• Discipline
• Confidence
• Patience
• Computer Skills
• Mathematical and Statistical Skills
• Logic and Problem Solving Skills

Discipline

Although it is relatively easy to create a trading system that should make money, it is very difficult to actually implement that system consistently without discipline. Each and every trade must be placed accurately and in a timely manner in order to realize the profit expected of the system. We have spent considerable effort automating every aspect of our trading to ensure systems are implemented accurately and efficiently, and developing mental discipline to ensure the discretionary part of any system is handled consistently.

Confidence

Without confidence in your trading systems and process, it is impossible to continue to trade through a losing period without modifying or abandoning your systems at the worst possible moment. We have done extensive research and testing to ensure all our trading systems are based on a fundamental way the markets work in order to have extreme confidence that they will continue to be profitable in the future.

Patience

For significant amounts of the time, even a good suite of trading systems can have poor or flat performance. It is very important to be patient through these flat periods and not deviate from your trading plan, or make trades through boredom, or the need for action.

Computer Skills

In the highly automated and electronic markets of today it is essential to have a high level of computer expertise in order to compete with other traders. We have extensive expertise in systems analysis and design that we have applied to the trading business in order to automate almost all of our trading processes. The required backup technology and procedures are also in place to ensure uninterrupted operation of all our trading systems.

Mathematical and statistical skills

An ability to use mathematics and statistics to accurately estimate the effectiveness, tradability, and profitability of a trading system is essential to the success of a trading business. We have developed proprietary methods to develop, test, and implement all our trading systems with a high level of predictability using advanced mathematical and statistical techniques.

Logic and Problem Solving Skills

A trading system is really an answer to the problem of creating a strategy that overcomes trading costs (commission, slippage, and spreads) and tilts the odds of success in your favor enough to make a predictable profit. We have extensive experience in business analysis and problem solving that we have applied to the trading domain to create effective solutions to the problems of trading.

Paul King
PMKing Trading LLC
Source: http://www.pmkingtrading.com/