"If education is always to be conceived along the same antiquated lines of a mere transmission of knowledge, there is little to be hoped from it in the bettering of man's future. For what is the use of transmitting knowledge if the individual's total development lags behind?" -- Maria Montessori
"The more you know, the less you need." This is the mantra of most veteran traders, and we are no different. Software and indicator vendors would have you believe that they and they alone have the most important and key tool(s) to your profitability. The truth is the most important weapons in a trader's arsenal cannot be purchased... they must be developed.
Here are four of the most important tools the independent trader must have or develop:
Commitment - Without this, you will not succeed in your quest to become a trader. Successful active trading is often frustrating... the learning process feels impossible. It is the perpetual slippery eel that you can almost catch, but not quite. Both enticing and maddening in its simplicity, trading leaves most who attempt to learn her "secrets" mumbling incoherently about trends, reversals and breakouts while curled in a fetal position. Not because it is impossible, but because they simply did not want it enough. Commit right now to pushing through this stage... or throw in the proverbial towel. If you're not fully committed throwing in the towel will be much cheaper and less frustrating in the long run.
Discipline - The single most important attribute of any trader. It is the net that catches you when your zen-like calm, your patience, and your positive attitude fail you. Discipline refuses to do other than that which is best for you and your account balance. We have never taken an outsized loss that did not involve a failure of discipline. NEVER. Think about what that means. Whether a trade that was initiated too large at the outset, a losing trade to which contracts were added, a trade that was taken outside our plan, or a trade that was held too long for greed's sake, we have always been able to trace large losses to a failure in discipline. Not some nefarious "they" out to take our money... not a failure on the part of our broker... not software failure. Do yourself a favor. Develop, maintain and love your discipline.
Patience - There are times when your optimal trade setup or entry refuses to show. Your carefully researched and painstakingly tested ideal does not present itself for hours (days). What do you do? Wait. To paraphrase Jesse Livermore (perhaps the single greatest private trader ever) "the money is made in the waiting." To do other than wait is to chase sub optimal trades because we don't want to "miss a move." There will be other moves. We promise. Wait for them.
Thick Skin - Though last in order in this short list, this is, perhaps, the attribute you must develop first. It is interesting to us that the person who takes the less traveled path will often be ridiculed and insulted... until they meet success. Whether private traders, entrepreneurs, athletes, etc., individuals pursuing seemingly unattainable goals are derided as foolish dreamers tilting at their own personal windmills. As an aspiring trader, you must develop a laser focus on your trading program and goals to the exclusion of all else. Build yourself a protective shell akin to that of a turtle and use it to shield yourself from the discouraging whispers of those neither strong enough nor willing to travel your path.
We all have the these attributes to a degree. If you would like to learn to trade you must embrace and magnify them. You won't be sorry.
R. E. Roberson is a professional trader and mentor. He is the founder of TheArtofSimpleTrading.com a trader education and mentorship website dedicated to helping novices learn how to trade. Visit for more articles, videos and downloads to help speed you along the path to trading competence.