Characteristics of Successful Traders
You should read this list every 30 trades and see if any particular item jumps out at you. But, be honest!
No one has all of these characteristics all of the time. But having known literally hundreds of traders, I can assure you that most of them share most of these characteristicsâmost of the time.
- Successful traders tend to have control over their emotionsâthey never get too elated over a win or too despondent over a loss.
- Successful traders do not think of prices as too high or too low.
- Successful traders do not get emotionally attached to a market or a trade. They do not anthropomorphize about the markets: "They're going after stops now," or "The market is nervous," or "The market must know something I don't." Just thinking in such terms is an error. The market is not out to get you.
- Successful traders do not panic. They make evolutionary changes to their trading program, not revolutionary changes.
- Successful traders do not flinch at making a decision, pulling the trigger once everything has lined up for a trade.
- Successful traders treat trading as a business, not a hobby or gameâeven if it is a hobby.
- Successful traders stay physically fit.
- Successful traders do not trade when they are emotionally stressed or under duress.
- Successful traders hang up the Do Not Disturb sign when they are trading.
- Successful traders come prepared for all eventualities on any given trading session. They come to work with a plan that includes many contingencies and not just for what they hope will happen. In your trading program, you should have predetermined responses to the following "What happens if â¦" situations: prices open sharply higher or lower; the market is quiet; the market is volatile; the market makes new highs; the market makes new lows; the market opens higher and reverses; the market opens lower and reverses.
- Successful traders trade only with money they can afford to lose. Trading FOREX is speculation, not investment. It can be exciting, exhilaratingâand addictive. Being emotionally involved with the money at risk is a formula for losing if ever there was one.
- Successful traders spend as much time on improving their attitude and money management as they do their trading method.
- Successful traders know they have more control over risk than reward. They manage the risk and let the market do the talking on reward.
- Successful traders keep a low profile and do not discuss their trading with others.
- Successful traders let the market do its thing and try to ride along. Unsuccessful traders attempt to impose their will on the markets and play driver.
- Successful traders know the rare occasion when it is wise to let their instincts override a decision.
- Successful traders embrace risk. They know that by attempting to push it away from them they are only drawing it closer.