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Qualities of Success -- By: Bill Kraft
Copyright 2009, Makin' Hay, Inc., All Rights Reserved
Bill Kraft
Editor |
I recently read a biography of Warren Buffet and it reinforced a
thought that people who achieve the highest levels of success in their
chosen fields have several important attributes in common. I don't mean
to arrive at a judgment whether they are "good" people or "bad" people,
only that they seem to share the same qualities in rising to pinnacles
in specific categories. For example, just because a man becomes a great
athlete or great statesman does not necessarily mean that he is also a
good husband or father although he may well be. I only intend to look
to those qualities that seem to coalesce with regard to the specific
area in which a person has attained greatness and suggest that those
same qualities are important in becoming a good, better, or even great
trader.
The qualities I see that seem to be most important are (not
necessarily in any order) passion, focus, determination, the creation of
a plan, and patience, and some form of giving back. Is there any doubt,
for example, that Tiger Woods on a golf course is focused and
determined? Obviously he is passionate about the game as he has devoted
his life to becoming the best there ever has been at golf. He
demonstrates patience in that he rarely does anything foolish to try to
force a result, but, instead, takes full advantage of opportunities once
presented.
If we apply the same characteristics that Tiger has on a golf
course to our trading is there any question that we are not likely to
become better? I don't mean to suggest that each of us is capable of
such passion, focus, determination, patience, etc. but only that an
increase in those areas is likely to lead to an increasing chance of
greater success. If we look at the flip side, how like are we to trade
well if we don't have a plan or if we fail to focus or try to force
trades through impatience?
Recently in response to a questionnaire I sent to a prospective
coaching student I received a reply that he enjoyed nothing about
trading and considered it a necessary evil and something that he had to
do. I replied saying that I thought he should reconsider the idea of
retaining me to coach him because I believe it is essential to have
passion for trading in order for there to be any likelihood of success.
In my view that approach is true in almost all endeavors. So many of us
go through the motions of life without a love for what we are doing and,
at least as a partial consequence, may never rise to the heights we are
truly capable of reaching.
I discovered trading relatively late in life, after age 50. It
grabbed me and I have been passionate about it ever since. When I
began, I had no other source of income, and not a lot of money, but I
knew it was what I wanted to do. I studied trading at least six hours a
day and often more. I loved learning about it and it became my focus.
Even today, after many years of trading, I continue to study; I read,
attend seminars, watch DVDs and do whatever I can to add to my trading
knowledge. I do those things because I am passionate about trading. I
do not contend that I am anywhere near being the world's best trader,
but I continue to try to be and I know that requires effort. For me,
trading is fun and the effort well worth it.
While it probably is not necessary to devote as much time and
energy as I have to be a success in trading, I do believe it is
necessary to have passion, focus, and determination to succeed in the
business of trading. Patience may take a while as it did in my own
case. In later articles, I'll try to discuss each of these
characteristics in more detail as we continue to try to elevate our
chances to succeed as traders and investors.
I hope you have a wonderful Independence Day and realize that an
ability to trade is one of the wonderful things that can, indeed, let us
be independent.
Good Trading!
Bill Kraft
Success Trading Group -- by the Success Trading Group Team
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Option Trader -- by Bill Kraft
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Here's a look at a trade Bill is currently working on:
DIAMONDS Trust, Series 1 (DIA)
A break below support around 82.30 would have me looking as
some puts on the "Diamonds" that gapped down and stayed down on fairly
high volume on Thursday. I don't plan to jump in before a break of
support, but if I see that break, some 4 to 6 month out in the money
puts could be a way to profit on a further downside move.
Good Trading!
Bill Kraft
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Trend Trader -- by Bill Kraft
Trend trading as we try to practice it is a form of momentum trading. We prefer to try to capture profit out of the middle of the trend rather than try to catch reversal at bottoms and tops.
Here's a look at a trade Bill is currently working on:
UltraShort QQQ ProShares (QID)
When the Nasdaq turns down, QID offers an opportunity for
gain. It gapped up on Thursday and has now formed a double bottom that
may suggest a chance to grab a gain on a downward move in the market.
Good Trading!
Bill Kraft
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$10 Trader -- by Bill Kraft
We really enjoy trading stocks that are $10 and under. Often they provide the chance to enjoy high percentage gains and, of course, at worst, the risk is limited to what we paid for the stock.
Here's a look at a trade Bill is currently working on:
Direxion Daily Financial Bear 3X Shares (FAZ)
This closed end fund is designed to move up with a downward
move in the financials. FAZ is currently in a short term trend up and
moved up Thursday on increased volume. It could provide a vehicle to
profit during a downward market move.
Good Trading!
Bill Kraft
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