- 1. FIRST THINGS FIRST
- 2. EXAMINE YOUR MOTIVES
- 3. MATCH THE TRADING METHOD TO YOUR PERSONALITY
- 4. IT IS ABSOLUTELY NECESSARY TO HAVE AN EDGE
- 5. DERIVE A METHOD
- 6. DEVELOPING A METHOD IS HARD WORK
- 7. SKILL VERSUS HARD WORK
- 8. GOOD TRADING SHOULD BE EFFORTLESS
- 9. MONEY MANAGEMENT AND RISK CONTROL
- 10. THE TRADING PLAN
7. SKILL VERSUS HARD WORK
Is trading success dependent on innate skills? Or is hard work sufficient?
There is no question in my mind that many of the supertraders have a special talent for trading. Marathon running provides an appropriate analogy. Virtually anyone can run a marathon, given sufficient commitment and hard work. Yet, regardless of the effort and desire, only a small fraction of the population will ever be able to run a 2:12 marathon.
Similarly, anyone can learn to play a musical instrument.
But again, regardless of work and dedication, only a handful of individuals possess the natural talent to become concert soloists.
The general rule is that exceptional performance requires both natural talent and hard work to realize its potential. If the innate skill is lacking, hard work may provide proficiency, but not excellence. In my opinion, the same principles apply to trading. Virtually anyone can become a net profitable trader, but only a few have the inborn talent to become supertraders. For this reason, it may be possible to teach trading success, but only up to a point. Be realistic in your goals.