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What Makes a Great Trader: 3 Parts + The Inner Game and Outer Game

February 4th, 2014

Hey it’s Sasha Evdakov founder of Rise2Learn and in this video I had a question about What Makes a Great Trade?

Well I think there's two main parts behind being a great trader. The first one is you have to master the inner game and the other one is master the outer game. When you master both these pieces and they come together you actually have that success.

Until you master that inner a game and the outer game you won't be a great trader because you don't have both pieces of the training puzzle figured out. Now if look at the outer game and actually watch what's going on and what makes a great trader I think it comes down to three main part and those three main part are, Entry, Management and Exit.

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The first part is entry and your appropriate timing on your entry is very important to your success if you’re trading directionally for example meaning you’re trading stocks long or your trading short to the downside, you need to have good timing.

If the stock is heading lower you don't want to catch it on the decline because that's like catching a falling knife you don't want to do that, if you’re trading options for option income monthly strategies then of course you still need impeccable entries you need to have great timing on your entry.

For example you don't want to enter an iron condor with just one day to go until expiration typically not the way things work so again entry is very critical to your success.

The second part is management this could mean risk management, money management and it can mean trade management. It's the management section behind your trading or your portfolio so you need to have very good management skills to be successful and that's what makes you great.

Now if you don't have great money management skills in your personal life, if you don't have great money management skills in your checking account or your bank account and what is it to say that you'll have great money management, risk management, trade management when it comes to trading.

You need to have impeccable management skills when you’re trading you need to think of it in terms of chess. Think of it in terms of 10 moves ahead what am I going to do if the stock does this I am I going to do when a stock does that.

Are you going to take some shares off, are you going to buy some more into strength, are you going to take half off a quarter. What are you going to do you need to be making these decisions so for that reason it's all on you and your decisions in your trade risk.

Of course doing newsletters and people that tell you trade alerts and what's happening that's all fine and dandy but unfortunately the problem with that is that they're not going to be managing your money for you and at some points under those people they actually want you to manage their money in their account for them you know they don't want to do the work and homework.

You need to manage your money, manage account, manager your risk and that's another key point.

The third and final piece that makes a great trader is the Exit Strategy or exiting the trade. You need to exit a trade in order to capitalize from it whether that's doing options spread, whether that's trading stocks you need it exit the trade.

If you don't exit the trade and you hold the stock for 30-50 years you never made a trade you made half of a trade, you need to get out of the trade in order to close out the position and collect your money and from there it can go into your bank account so you need to exit the trade whether that’s your exiting quarters, whether you're exiting in halves you need to make exit of some sort.

Now exiting can also mean taking a loss or a hit by having a good exit you know got a small loss having a bad exit that could mean taking a big loss. Again all predefined in your trading plan and your trading strategies however exit is the third part behind what makes a great trader.

Now remember it really does take the inner game and the outer game working together to be able to be very successful at trading. You can't just have that outer game which we just discussed about the entry the management and the exiting part you need to have the inner game and when they work together that's when everything just flows.

Thanks for watching and I look forward to seeing you next time and remember to do what you love, contribute to others, and most importantly live abundantly.

Author: Sasha Evdakov

Sasha is the creator of the Tradersfly and Rise2Learn. He focuses on high-level education speaking at events, writing books, and publishing video courses on business development, internet marketing, finance, and personal growth.

I'm Sasha, an educational entrepreneur and a stock trader. In addition to running my own online businesses, I also enjoy trading stocks and helping the individual investor understand the stock market. Let me share with you some techniques & concepts that I used over the last 10+ years to give you that edge in the market. Learn More

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