Many traders have losses because they are mentally to weak

Many traders have losses because they are mentally to weak

The best traders are able to bear a lot of stress, they handle it very well. The weaker traders experience the same level lose their thinking clarity what results in loss of profits and increased losses.

One of the best traders had a loss of over 100 million dollars on his trades. Despite this, he persuaded his superiors to maintain this positions, he even talked about it with the bank’s president himself. Eventually the position was maintained. After some time, the price went towards right direction and generated more than double the profit.

The trader admitted that he was aware of the emotional costs and the pressure he would have to bear – one caused by the trades and second – the pressure from his superiors (the bank’s CEO, inclusive). But the technical and fundamental aspects were very good.

This attitude (among other things) distinguishes the best institutional traders from their less-paid colleagues. Another big thing is the ability to withstand the pressure that other people can not cope with and give up.