I had a conversation with a new trader today and shared my observations of his trading career.
Here is what I liked:
- He has the ability. He possesses the ability to process information quickly. He has the ability to make fast decisions. This was clear during his firm interview and persists after his start.
- He has an outsized interest in trading. During mentoring sessions he is an active listener as opposed to passive and wandering. His AM prep shows chart review. He knows the key news in depth moving the market and stocks when pressed.
- He looks at markets uniquely. He offers new and different ideas for trades.
- He is surrounded by traders with edge to talk markets.
Here is what gives me pause:
Is he developing good trading habits? Is he doing the work required after the close and weekends to study and review markets. I am not saying he doesn’t. I am saying, I am not sure that he is. And we will check this going forward daily.
This conversation raises two important issues for your trading career.
1) Are you developing the right habits so you improve each day as a developing trader?
2) Are you held responsible for developing those right habits? One of the large advantages at a prop trading firm or Hedge Fund is that they will hold you accountable. If you are not doing the work required to grow, you will lose your seat. There are fifty qualified others who would love that seat and the firm will fill it with a better candidate.
For your best trading development you need both. You need to be implementing best practices into habits. And you need someone to hold you accountable. One wasted day of improvement, can slip into a week, which can slip into a month, which can metastasize into a missed trading career.
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* no relevant positions
