How Great Traders Manage Their Multi-Dimensional Roles Effectively

Multitasking TraderA successful and consistently Profitable Trader has multi-dimensional roles to play. More than that, these traders make a conscious effort to learn, understand and manage each role carefully. What do I mean by a Multi-Dimensional Role? In this article, I will first give a very brief snapshot of the various roles required to be a successful trader and I’ll then explain what it takes to excel.

Multi-Dimensional Roles Explained

  • The Planner

You need to be forward thinking and have a good plan in order to search, prioritise and execute good trades. This role is all about the big picture – where you are now, where you want to be and how you’ll planning to get there.

  • The Disciplinarian

Pending on your Trading System, there can be many rules to follow. One would also need an effective Reward Vs Punishment system to grow and mature your trading skills, just like any other skills. The role is potentially (though not necessarily) very mechanical and emotionless.

  • The Accountant

The final aim of trading is to make financial gains. Hence, at the end of each trading period, you need a clear account of all trading activities. Without transparent and traceable records, it’s difficult to identify inefficiencies or key areas for improvement

  • The Motivator

Rome was not built in a day. For all the effort and hard work, you definitely need to be kept motivated before you can see the light at the end of the tunnel. Some will succeed and some will not but, very often, the key differentiator is the level of motivation one has.

  • The Statistician

Trading is a about having an edge and you need to know the statistics of your system to build that edge – including probability of winner / losers, expectancy, risk: reward ratio, profit factors and etc. Without a good statistical knowledge of your system, it will be difficult to execute your edge effectively.

  • The Trader Type

Fundamental Trader, Sentiment Trader, Technical Trader or what ever that may be. There are many more types of traders as there are many ways to trade the market. You can be a profitable trader by choosing to be either one or a combination of the above trader types. However, the key thing is to choose and stick to it without sitting on the fence.

  • The Human (Emotional Account)

Last but not least, an inevitable role of a Trader is that we are human beings too. And this role comes alongside with emotions e.g. greed, fear, confidence and etc. Maintaining a good Emotional Account and knowing when NOT to trade is also crucial.

Breaking Down the Barriers

Essentially, being a Great Trader is not easy. However, being a Great Trader isn’t that hard either. The Key to success, in my view, is really to break down the various roles (mentioned above) and manage them independently. Along the way, you might need specific help from a Trader Mentor or Coach on areas that you’re weak, and that’s absolutely fine. In fact, by breaking it down, you’ll know which area to seek help. Hey, that’s a fantastic position to be in. Furthermore, I hope you realise that by managing and executing each role individually, these tasks becomes less daunting and are not actually that difficult any more. It becomes very challenging only when traders attempt to perform all of the roles at the same time. Once the roles have been prioritised and dealt with individually, becoming a consistently profitable trader isn’t just a dream but a highly possible reality.

Conclusion

The purpose of this article is to illustrate that every one can be a great Trader. The recipe required is a good understanding of the various trading elements and then managing them effectively. Very often, Amateur Traders get confuse and frustrated, they tend to lose track of what is important and they do silly things to blow their trading account (see related article). However, if you break down all the roles above and manage them one step at a time, you’ll soon find out that the roles are not that complicated. Again, there’s nothing wrong with getting Professional help.   Thank you for reading and hope you’ve enjoyed this article!

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