Wednesday, May 14, 2014

Ten Principles of Peak Performance for Traders - Trader10P3

I will be on vacation and away from markets and blogging for the next ten days.  During that time, TraderFeed will feature 10 Principles of Peak Performance for Traders (Trader10P3).  Each day, a new principle will be posted as a question for reflection.  Together, the list will make for a thought-provoking score card by which you can assess your performance.

One of the great challenges of trading is that it requires intense and singular concentration on markets, but also an equal focus on one's performance in those markets.  That combination of market awareness and self-awareness enables traders to make the most of their "edges" in markets while also cultivating fresh sources of edge.

It is interesting that very successful traders usually don't achieve monetary success and then walk away from markets.  That is because what drives them is not just the outcome, but also the process:  the ongoing challenges of market mastery and self-mastery.  Even after the money has been made, the game retains its appeal.

If your motivation is primarily to make money, you probably won't get to the point of career success, because the inevitable periods of drawdown will sap whatever drive is present.  When the motivation is mastery, losing periods provide fuel for reflection, learning, and improvement.  

Money is the score card, but the performance engine is love of the game.

Further Reading:  Trading as a Performance Activity