What Makes an Option Trader Great?
The other day, I was digging through a stack of old notes that I made to myself when I first got started in the option trading business years ago…
I really can’t believe I had let so much dust collect on them… because this stuff was awesome! I felt like I had just re-discovered a buried treasure…
In fact, the content was so helpful for me, I thought I would pass it along. Apply these 6 principles to your trading, and you will separate yourself from losing traders, and join the ranks of the consistent winners.
I have to be honest here and say that I didn’t come up with this stuff.
These are concepts compiled after years of studying some of the Great Traders of our time. So, you don’t have to just take my word for it!
When I fist started trading, I knew all I had to do to be successful was apply a rule I had always lived by…. “Do what highly successful people do, to get the same results.”
After reading countless books (probably enough to fill a small library!), I compiled a refined list of traits that emerged from each one of these Great Trader’s stories.
What Makes A Trader Great?
- Constantly Evolving: Great traders never stop studying the game and learning their craft. No matter how big or small their monthly, quarterly or annual returns, they always continue to learn.
- Staying humble: The majority of great traders come from modest backgrounds. Most didn’t grow up being fed with a “silver spoon.” They had to put their “head to the grind” and get to work. And almost all tribute a strong work ethic instilled at a young age to a parent.
- Bouncing right back after a loss: The ability to handle losses stands out as a Hallmark of a great trader. While they always evaluate and learn from losses, they also have the courage to get “back on the horse” and try again. Every option trader loses, but not all bounce back.
- Staying in Shape: This means staying in peak conditioning, both mentally and physically. Because every discipline affects every other discipline. In other words, “how can one expect to be disciplined with money if they are not disciplined in other areas, like physical health?” The two are strongly related.
- Trade to Win: Some traders trade not to lose, rather than to win. Great traders expect to win on every single trade, yet have developed the mental flexibility to get out quickly if they are wrong.
- Persistence: Perhaps the Granddaddy of them all. They keep searching and searching until they find the right opportunity. And they never hesitate to get training and coaching from someone who has already set himself at liberty. Persistence is a habit, but so is quitting.
..So there it is.
This is what I would like you to do now. Comment on which of the six has been the biggest obstacle to overcome for you. There are a lot of people who read this, so you just might get the answer you need to put that barrier behind you once and for all.
Make it a great day,
Jeffrey Ziegler
12 Responses to “What Makes an Option Trader Great?”
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Jeff, Thank you for the great tips to be a better Trader! Staying in Shape seems to be the toughest for me. Working a full time job, a side business and trying to make real gains trading, while also having a busy, happy family life leaves little time to work out.
The challenge is to step away, get physically fit and clear the head. There is always so much to do that this very (most?) important task is usually left to be accomplished after all of the urgent and pressing.
Knowing the problem is the first step to success. Now ACTING on this problem is the MOST important step to success!
One trick that’s helped me subdue the FEAR/GREED monster is to redefine wins and losses.
By defining them as revenue and expenses I find my ego does not get as offended when a “bill” comes due.
We all know that not every trade works out the way we planned. No, STRIKE THAT, not every trade works out the way we’d like. Since we plan our trades then EVERY which ever way it ends, it was the way we planned it.
So whether it made money, or we spent money, the object like any business is to make more than we spend.
That is a profitable trader.
One other redefinition I use is to think points or pips during the trading day. I only count dollars after a trade closes, and usually after my trading day closes. This keeps my mind from fretting or spending what I haven’t yet realized.
As a formerly fully licensed securities broker in stocks, options, and insurance, I appreciate the way you help your clients manage a effective income strategy.
Keep up the good work, people will need it even more over the next few years.
Dave
Boy does that sound familiar! I remember those days, Mike. Here something that may help…find 30 minutes at lunch to do H.I.T training (high intensity training). On Monday, Wednesday and Friday do full body interval resistance training and on Tuesday, Thursday and Saturday do sprints or jumping rope as hard as you can. I’m only talking 30 minutes per day…but it’ll make an unbelievable difference! One other thing…pack all your own food for the day. Get six small meals every 2.5 hours apart so your energy is always at the peak.
Hope this helps…
JZ
A tip for MIKE S…
Staying in shape is tough for most people these days. With the proliferation of economic, job, time stresses, and fast food joints, it’s no wonder people are getting heavier and weaker each year.
The conspiracy theorists will point to big business and big government plans to enslave the mass populace, but I think we still have choices.
Ask yourself what will you be able to do better later today or tomorrow if you skip your exercise or nutrition plan right now?
It’s a mater of priorities and if you skip the most important ones, you’ll not likely succeed at the rest.
For a quick solution, look for Matt Furey’s Royal Court. It only take a few minutes in the morning, and if you wish, a few more in the evening.
I’m turning 60 soon and credit my health and energy levels to these quick exercises.
Best of luck with your trading.
Dave
Great list Jeff. Constantly evolving and persistance I think are most important behind discipline. Being that we live in an information age, it is so easy to get side tracked by the next “best” opportunity whether in trading or anything else. Persisting in mastering the foundation of trading basics I have found to be priceless. I believe your training course to be just that.
Hey Adam…really appreciate the kind words. Glad you’re part of the tribe!
JZ
Great advice – I am changing a few things in my daily routine after going through an extremely trying and stressful family crisis. These 6 steps couldn’t have come at a better time in my life. Thank you for posting them and for everything you provide on you training subscriber membership websight as well.
PS How can I update my reply box with a different photo/avatar? Want to put in a market related picture that is more fun than the default non-personal one that is on there now. Thanks
This is a great list Jeffrey, thanks for posting it. The hardest obstacle for me, without a doubt, is “Trading to Win”. Of course I always go into a trade expecting to win, but I definitely trade “not to lose”. I find myself taking profits early, in order to lock them up. But when I’m faced with a loss, I will hold on waiting for a reversal that doesn’t materialize and usually gets worse. It’s a situation where I am allowing myself to lose more than I will allow myself to win.
I would like to see more posts/videos that talk about the “mental side” of trading, and how to deal with issues traders face.
Thanks!
Hey Tommy,
Thanks for the suggestion…Will do. By the way, did you get a chance to watch my Fear and Greed video in the members area? I talk specifically about this more in depth.
JZ
I read the book “Trading In The Zone” by Mark Douglas a few months ago. It is THE book for all traders! Highly recommended.
Hi Jeff, Great stuff in Zig’s Take! It’s so great to be connected to someone we can trust to help us in this business. There are so many snares out there, especially on the net. I’m thankful that the Lord led us to you. I am also taking the course you recommended with Mac X. Thanks for your lead on that as well. Keep us posted on how your moving forward on the Forex stuff as well.
In His Love ~ Rebecca Laughlin
Hey – quick tag to previous comment – I got on to quickly comment on the Zig’s Take then saw the above post with the list of six traits. Just another example of the cool stuff you bless us with. Hours of homework summarized right there in a few seconds of reading. Thanks so much.
Quick grammar correction on above comment – “you’re” moving forward ….
Looking forward to more cool stuff – I’m soaking it up like a sponge!