Seven Habits of Phenomenally Successful Trader
When trading financial markets, there are certain defining habits that all ultra-successful traders and investors utilise to build their massive wealth. Find out here if you have them all.
Having a regimented, emotionless approach to the markets would already set you apart from 90% of smallest and also biggest Forex market players
Nothing else than your daily actions and attitude matters. Not what you think, but how you execute. For example, imagine that you can have a regimented, emotionless approach to the markets. That would already set you apart from 90% of smallest and also biggest Forex market players. Soon you will see that repeating great trading habits, day in and day out is the key to building serious profits.
1. Develop A Stunning Money Management
There is no highly effective trader who doesn’t have this. Understanding how much money to risk, setting appropriate stop losses and taking your profits at the right time are all vital abilities. While you will have varying approach comparing to other traders, the technique has the same overall goal – to preserve your capital at all costs towards building long term wealth.
2. Trade Without Emotion
There is no place for emotion in trading. The more you can treat winners and losers with the same reaction, the more consistently you will be able to execute your trading plan. If you get upset, take a break from trading, nothing good happens when you are trying to play catch-up.
3. Run Your Winners for Maximum Profit
In financial markets many beginners think the best traders are right all the time. It’s a myth. What the best traders know is it’s the size of the winners that count. In fact being correct 50% of the time is considered an incredible strike rate in professional trading. Once you’ve found an asset that you’re good at, simply stick to it and master your craft. Learning to take meaningful profits is the only way you will cover your losses.
4. Cut Your Losses Early
Given how difficult it is to be right in the highly competitive world of financial trading, let your winning trades run and cut the losing ones early. This means when the market moves against you, don’t rely on hope that it will soon come back. Unless there’s a clear market signal it will happen, get out soon and head onto the next, hopefully profitable trade.
5. Repeat Your Strategy, If It Still Works
Trading is a battle to take money out of the market. To do this effectively you need a repeatable strategy that works long term. The changeable nature of markets means it may need to be tweaked once in while. You’ll higher your chances of success with eternal market principles like swing trading or trend following.
6. Scale Up When Winning, Back Off When Losing
When you are winning in the markets you need to (sensibly) increase your position sizes as your account balance grows. The same principle applies when you’re losing, as it’s important to cut exposure as your losses mount. Understanding when you are losing touch with the price action is as important as realizing when you have it well tracked.
7. Find Your Unique Trading Edge
In order to sustainably beat the market, you need to find a niche where you have an advantage over other traders. For some this might mean focusing on a single currency pair, others it might mean looking over hundreds of charts for a particular candlestick set-up that gives them a high-probability low risk trade. Who knows, maybe you’re better suited for tactics we teach in options school lessons.
Whatever it is for you, finding an edge you believe in will probably allow you to follow the other habits listed here more easily, essentially doubling your edge over ordinary losing traders. Follow all of these habits of highly effective traders and you too can be a trading Rockstar, building a fantastic income from the markets.