The best trader

It has been written on Wednesday 22th.

Until 3p.m. has been a boring day in the stock market. So I’ve spend some time reading amazing blog like Althucher confidential. But today I’ve found a good surprise. Really good material in The Best Trader in the World worked for Bernie Madoff.

http://www.jamesaltucher.com/2011/06/the-best-trader-in-the-world-worked-for-bernie-madoff/

Half of the post isn’t interesting but later he explains what makes this friend Eddie a real great trader. And that’s why is a must read post. I’m going to summarize it.

-         He is very humble.

-         He is responsible for his own errors.

-         He bets for an idea related to a new that is going to come out. If markets goes against him he goes out immediatly. The market is the boss everytime.

-         He learns everything about some low volatile stocks and concentrate all his trading around them.

-         He has his own statistics, and he studies it every night.

-         He look for a stocks of the same sector. If one of them is going down while the others are up without any new or some institucional selling, he buy the stock and wait for a closing of the gap between them. (note: that is only for day-trading I think!)