THE ALPHA TRADER
There is an elusive group of traders, who time and time again have been able to make consistent profit from the markets. I call them the ‘alpha’ traders, because they represent the first group of successful traders in a market that is statistically noted for its high risk and volatility. In a room with a hundred traders, these “alpha” traders number about five. Their existence is almost a myth.
These alpha traders have no super-human strength or intellect; they are simply men and women who have found ways to successfully trade the financial markets. When anyone hears this phrase, one immediately thinks about George Soros, Warren buffet and the greats of the financial markets. However, I do not refer to these greats. I refer to the average swing trader, the Chinese wife trading from the comfort of her home, the young student trading to carter for educational fees and the husband, who spends a few hours in the market, while he handles his day job.
THE ALPHA MINDSET
The alpha trader is first and foremost a businessman or woman. Every trading decision is taken as a business decision, free of emotion and bias. The alpha trader looks at minimizing losses and maximizing …