i look at trading as having four elements (for the discretionary trader)
1) emotional. arguably the most important. you are your own worst enemy. your emotions (fear, hope, greed, euphoria, panic) will work against you. that's how the market is designed, as a dynamic feedback system which is the aggregated results of all traders. have to master yourself before you can master the market
2) business plan. have a business plan. WRITE IT OUT. follow it. trading is a business. every trade is a business decision. your trading capital is your most important business asset. protect it
3) your trading methodology. this is what most traders ONLY concentrate on, but without 1 and usually 2, even a positive EV 3 will result in failure. but assuming 1 and 2, having a positive expectancy methodology is key
4) your execution skills. even with the above 3, you have to be able to execute trades. iow, being very familiar with your order entry system, and being able to work the book a little can help as well. after all, being paid the spread is much better than paying it
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