ChainCatcher news, trader Eugene Ng Ah Sio posted on social media to discuss what is a truly excellent trader. He said that an excellent trader should have at least 3 qualities:
1. Have a keen sense of emotion, be able to recognize that you have psychological deviations and choose to stay away from the screen at this moment;
2. Build a sound risk management framework with a trading system that can mitigate downside losses and enable the system to withstand 2/3/4 standard deviation events;
3. Increase aggression through bet sizing, and be able to evaluate whether position sizing is reasonable when making high-confidence bets.
2/3/4 standard deviations are often used to assess asset price volatility, and these standard deviation events are used in trading systems to identify potential trading opportunities, risk management, and market anomalies. These events can help traders determine the normal range of market fluctuations and possible anomalies.