InvestorQ : Famous traders say that success percentage does not matter. Is it correct?
Niti Shenoi made post

Famous traders say that success percentage does not matter. Is it correct?

Answer
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2 years ago


Some of the finest traders in the market like George Soros and Peter Lynch have reiterated that your success percent does not matter. Implementation and execution matter a lot more than ideas and strategies. After all, ideas and strategies are only a starting point. Eventually, it is what you do with these ideas that really count. Like the famous initial owner of Apple Computers who sold off his entire stake in Apple for $1000 some 30 years back. Had he held on, that would have been worth $50 billion today. That, probably, best explains why you must focus on the execution aspect.

The next time an analyst or broker or trader advertises their success percent, learn to restate it. You will be surprised how different the real world looks from the Utopian world. Rework the trading and execution costs, provide for liquidity risks, and admit that you are dealing with emotional humans and not with automatons. Once you are able to put a number to these ideas, you get a success percent that is more realistic. The biggest challenge is that even the best of traders are only right half of the times. They have to make the best of their success and cut short their failures. Remember, you have to make your winners count. There has never been a better way to make money in the stock market. There, perhaps, never will be!