With so many traders and trade managers out there seeking to profit in the same market environment, how does an investor know who is best positioned for success? Fortunately, performing due diligence is not that hard if you know the right questions to ask. Successful traders think and act differently than the rest, and it is essential to understand their qualities and mindset.
A few shared traits of highly successful traders are:
Capital Preservation
According to Bridgewater Associates Founder Ray Dalio, traders need to, “Make sure that the probability of the unacceptable (ie the risk of ruin) is nil.” That sentiment is echoed by Warren Buffett who is often quoted as saying, “The first rule of investment is don’t lose money. And the second rule of investment is don’t forget the first rule. And that’s all the rules there are.” Don’t make the mistake of thinking that capital preservation means there are no losses, however. All traders experience losses from time to time, but the key is to have strong risk management systems in place in order to reduce these losses while maximizing gains.
Mediatrix Capital’s commitment to capital preservation is based on a defensive Forex trading strategy that incorporates more than 40 years of combined trading experience between the founders. Having lived through multiple market cycles and black swan events, it’s clear that trading is not only about mathematics, but also about preparation for the unknowns. Additionally, strong trading systems should be based on “table driven” architecture within the programming that permits rule and input changes on the fly, in an ever-changing market. Our Forex navigator, for example, allows for changes within system inputs based on any macro level market changes thus allowing our trading team to stay relevant over time.
Strength and Discipline
Discipline is one of the main keys to being a great trader. Unfortunately, trading is not always easy so it’s important to remain strong, stoic and passionate. Some of the wisest investors in the world understand the importance of working with disciplined traders. It’s also smart to go beyond the obvious and insist that the traders you rely on are disciplined in all facets of their life. If they are renowned for bad behavior, for example, it’s likely to affect their trading patterns and that’s a red flag.
Traders who have a strong strategy in place and who continue to achieve consistent positive returns over time are typically those who stick to the plan and stay the course. They accept responsibility for their actions when trading and always analyze every move before and after. They don’t change the rules over any one losing trade, but instead learn from the experience and prepare for the future. Utilizing strength and discipline in a “hard coded” fashion, or in a real-world instance, algorithmically assures that rules, discipline and strategy cannot be overridden by moments of emotional weakness.
High Emotional Intelligence
Traders who have a high emotional intelligence (EI) or emotional quotient (EQ) are able to understand their own emotions, as well as other people’s emotions, and rely on that knowledge to guide daily behavior patterns. This helps make the trading process more effective in that their ability to stay balanced and focused contributes to wise decisions. Utilizing trade automation that employs strategies of Superior EI & EQ yields immense strategic advantages.
When the markets are volatile, it’s easy to give way to emotions and forget to act logically when entering or exiting a trade. It’s imperative to understand that volatility can be used to one’s advantage if you are able to rely on your EI to remain calm and focus on the best strategy for each unique situation. However, the component of speed is also critical, which is never the friend of the emotion. Those who are trading without the aid of automation, will become less and less relevant over time.
Big Picture Focus
Much of Forex trading focuses on short term movements that involve a trader being either bullish or bearish on any given currency pair on any given day. A successful trader, however, also has the ability to take a step back and study the longer-term picture as a roadmap for future decisions.
Mediatrix Capital’s stand-alone Forex trading systems are an example of this big picture approach in action. Our algorithms use one navigator system to employ a 30 concurrent currency pair functionality while the second system takes that 30 pair base and adds four precious metal pairs, including gold, silver, platinum and palladium, for a 34 pair system. With both systems constantly analyzing market conditions to send trade signals when appropriate, and with 30-34 choices from which to choose, the probability of successful trades is higher. The system also selects the highest probability pair for zone recovery correlation trading amongst other functions and instantly validates it when zone recovery is required. This selection process is completed in nano seconds and since there is normally a slight lag in correlated pair movements the execution is timed to perfection and at a very high percentage yields success for its efforts. That small-time window is critical and allows the system to take advantage of a market move coming that hasn’t yet happened. Speed, calculation, rules. Can a human mind do all of this in an instant, AND monitor 34 trade pair options at the same time?
Incorporate Technology
Trading is competitive and today’s leaders know how to take full advantage of advanced technology, including artificial intelligence, in the quest for strong investment returns. Incorporating technology effectively as part of the trading process has proven to help grow portfolios with an asymmetric return profiles and definable and downside risk to capital invested. By utilizing proprietary artificial intelligence and algorithmic approaches that incorporate overlay and absolute return strategies with distinctive methodologies it is possible to achieve great returns. Outdated technology, on the other hand, is another red flag that puts a trader and investors at a disadvantage.
When evaluating a trader, be sure they have what it takes to help you achieve your goals. Top traders are accountable, empowered and dedicated every step of the way.
For further information, visit www.mediatrixcapital.com or call 1-800-905-1006.
Disclaimer
In no event should the content of this material be construed as an advertisement, express or an implied promise, guarantee or implication by or from Mediatrix Capital Inc. (MC) or any of its partner or subsidiary companies. This is not an attempt to sell or solicit any security and should not be taken as such. The content of this document is for informational purposes only. Potential Accredited Investors are advised to carefully read the Disclosure Documents to determine whether a managed investment in MC is consistent with their financial situations and investment objectives. Past results are no guarantee of future performance. Mediatrix Capital is a foreign corporation based in Nassau Bahamas, and does not operate within the United States.
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