great article about understanding the mentality of trading and how to use technology to evaluate performance and increase alpha
The greatest skill a trader must possess is the ability to adjust. You have to be quicker than others to figure out what makes the market tick today/this week/this month.
IMO the market is pretty much the same as it has always been although technology increased information dispersion which has made the market more competitive. But the themes are the same and don’t really change. I don’t think I could make money day to day or week to week in the market but I can tell you with conviction which stocks are likely to be down over a 2-3 year time period. I just structure my portfolio around that and let traders trade. Most traders are going to go out of business long-term due to HFT and algo-trading anyway IMO. I can make high returns by passively sitting in inevitable outcome stocks which aren’t even that hard to find if you know where to look.
i think the technology/psychology in the article is good. it will help people identify their strengths and weaknesses and will let the trader work to improve upon his weakness. self eval is very important and very few people do it.