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We recently did a large scale review of our best-performing traders.
Here are some interesting insights that you can learn from.
1. Specialisation. They focus on a couple of core assets. They don’t trade the entire watchlist or chase what’s moving that day. They build an edge in a niche.
2. Selectivity. They trade less frequently. They wait for the right setup and size into it properly. They’re picky and ignore most of the noise.
3. Sizing. When a setup triggers, they back their ideas with size. When there’s no setup, they don’t trade. This helps avoid chop and commission drag.
4. Directional bias. They commit to a directional bias when the market rewards it. They generally don’t flip flop daily or run hedged long/short positions.
5. Asymmetry. A few high-conviction trades drive nearly all returns. They know that attention, fees, and energy are real costs. Outsized winners account for most of the lifetime PnL.
6. Resilience. Very few of them were funded on their first attempt. It usually takes a couple of attempts before they figure out appropriate risk levels for both the evaluation and the funded account. Once they do, they stay funded for longer and breach less frequently.
Overall, the best traders don’t trade out of boredom or to generate excitement.
They build an edge in a niche, size it properly, execute with conviction, and ignore noise.
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