4 pillars of success 10% of the best institutional traders

4 pillars of success 10% of the best institutional traders

The components of success according to the research fall into 4 categories.

The first 3 are according to the system (way of selecting and valuating positions), capital management and mental toughness. The 4th broad category includes a lot of techniques supporting the first 3.

We are interested in a very practical and non-theoretical approach, hence this division with with the separation of the “fourth category”.

Quite a long time ago I noticed that the best use a lot of tricks helping them at work. Sometimes these techniques transplanted onto another ground (eg used by another trader) constitute a sudden explosion of profitability.

Large companies know this and they facilitate exchange of experience between seniors and younger traders. With time, this additional intellectual capital determines their market advantage and strengthens it. This, of course, is unachievable outside large companies and completely inaccessible to retail traders or smaller funds.


System – way of selecting and evaluating the trades. There is a fairly common opinion that the best traders from the others are distinguished by a group of the best trades (made over a longer period). Typically, these entering the market are the most “loaded”. Two important observations follow.

The best traders opt for opportunities better and are able to assess the quality of upcoming trades opportunities. In many funds there is even the practice of giving up quite good trades, in favor of focusing on the really best and the least risky ones. I will repeat – good trades are rejected, only because they are not really the best – according to the internal scale of valuation.

For a trader not belonging to #Top10% the best traders the key tip will be: you have both good and weak trades. Some of them are the best – look at them closely and think about what to do first to find the best trades in the future and then to have more like them.


The key tip is – the best trades have much bigger capital involved.


Mental toughness: in short it is resistance to stress, hardening “in battle”, the ability to focus under pressure, the ability to recollect when something breaks, the ability to follow the plan prepared in a moment of clear mind despite the current chaos, pressure, conflicting messages and big emotions around, the ability to withstand the assumed TP.


Here, I’ve found maybe a few dozen methods, “tricks” to facilitate and improve the work of the best fund traders, I will describe a lot of them in next posts on this blog. Stay in touch!