While its a little quiet here during Asia a spot with some interesting reading.
Its a pretty quick read, broken into bullet points (so even traders can read it 😉 )
- While I believe that the success rate in trading is less than that in long-term value investing (and this belief is debatable), I also feel that good traders are far more detached than value investors.
- What do I mean by “detached?” By the term detached I mean the willingness to be objective about the situation. This means first acknowledging that all trading is probabilistic and there are no sure things and what should work often doesn’t. The same, by the way, is true about investing.
- Recognition of this reality makes it easier for a trader to quickly change his mind when evidence tells him that he is wrong.
Agree, disagree? Comments welcome!