Crosshairs Trader has an excerpt from Jack Schwager’s Hedge Fund Market Wizards. The interview with Steve Clark makes an interesting point.
Schwager: You have seen a lot of traders. What are the characteristics of traders who succeed?
Clark: They all work hard. Nearly all the successful traders I know are one-trick ponies. They do one thing, and they do it very well.
I find it interesting that most successful traders specialize in one method or return factor. The takeaway is that it is almost impossible to be an expert at everything.
Although I wouldn’t rule out expanding our expertise at some point, relative strength has always been our focus. It’s an incredible bonus that relative strength is so adaptive that it can be used in many different systematic processes.
(By the way, you’re missing a treat if you haven’t read any of Jack Schwager’s books. I haven’t read the most recent one yet, but his first Market Wizards book is one of my all-time favorites.)
One-Trick Pony
Source: dgdesignnetwork (click on image to enlarge)
HT to Abnormal Returns
