The Ten Attributes of a Great Trader (Part 2)

01/27/2009 12:01 am EST

Focus: STRATEGIES

John Netto

Author, The Global Macro Edge

3. Vision – While total clairvoyance as to future price movement is unrealistic, it is my goal as a trader to assimilate as much information as possible with the goal of playing out scenarios that tie in together. It’s not always easy to do, yet understanding trading does not occur in a vacuum, and markets do exhibit funny things that get you mentally prepared to deal with these outlier events. Those who can think for themselves, and need not rely on templatized news releases for their ideas, usually put themselves in a position to benefit from their forward thinking.

   We have heard many times about leaders who saw an industry trend before it happened. This was no accident. It came as a result of their understanding of their field and what could change it for the better. Traders who gain an understanding of how things can potentially play out and factor that into their trading strategy go a long way to keeping their objectivity when things unfold in a fast and volatile market.

4. Discipline – Nine years in the Marine Corps helped me to develop this quality, yet its resolve is constantly put to the test. As the chief investment strategist for NetBlack Capital, a commodity trading advisory, I manage money for high net worth investors and institutional clients. I am regularly balancing the pressure of having to produce returns with that of taking on viable market opportunities. This is part of the job, and one that I take on with great alacrity. However, discipline is more than just taking on a trade when you are supposed to. It’s doing your research at the prescribed times, making your Fibonacci grids the night before trading, working out regularly, eating right, keeping a trading journal, and doing the exercises of your life coach. To not have discipline in your life makes it very difficult to have discipline as a trader. In many ways, our trading is a proxy or microcosm for how we live.

By John Netto, founder and chief investment strategist, NetBlack Capital, LLC

Related Articles on STRATEGIES