To be successful traders, there is a list of traits that you should know. The typical list of success traits always includes characteristics such as discipline, focus, passion, commitment, determination, and confidence. These can be found almost anywhere and in any book, you read. When applied right they can act as a framework for achieving success in all aspects of your life.
Discipline Is All or Nothing
One cannot be disciplined up to a certain point and yet call themselves disciplined. It’s all or nothing. Either you are going to be a trader or you’re not. Discipline needs to be exercised at all times and not sometimes only. This doesn’t mean you focus 100% of your day on trading – that would be crazy – but that you are 110% committed to becoming better over time.
Losing Is Welcomed to Learn From It
You will lose money – and the sooner you accept this fact the quicker you move on. Since everyone loses money, the thing that separates great traders from bad ones is that great traders learn from the losses. Welcome the opportunity to advance your strategy or adjust your trading plan after a loss.
Never-Ending Student of The Markets
The markets are changing every day and you need to fully understand how it works. As it’s changing you must learn to evolve and change with it. Sometimes this requires adjustments on your part. The moment you engage in learning new things, there will always be good opportunities that will open.
Unique Trading Personality
You are an individual and your trading should reflect that. Trading has a way of uncovering the personality of individuals by making them trade outside their comfort zones. It is very crucial to match your personality with the right kind of trading.
Can Separate News Hype from Reality
It is a crucial trait for you to know how to think for oneself without being influenced by the media and the news. All the great traders normally know how to think for themselves on some level.
Simple, Yet Clear Planning
It’s more likely for a trader to be successful if you have a plan than if you don’t have one. What are your goals and how will you get there? How will you protect yourself from losses and at what point are you going to make profits? What will you do with your winnings? There are countless questions to ask here.
Proactive and Not Reactive
Probably the most important trait on this list! A trader needs to know how dangerous it can be if you overreact and make quick decisions without thinking. The ability for you to become a better decision maker will arise from experience gained in trading. Be proactive in knowing every possible move ahead of time and don’t just react to what the market gives you.
Commitment to Learning What You Fear
The most attractive things in life come from the most unattractive activities in life. Most successful traders have developed over the years a sense of “status-quo” in their plan. They got burned by options before and will NEVER trade them again. Well, you need to learn about options and futures and stocks and forex so that you understand how they all work to affect each other. Don’t be afraid to re-learn!
Being Patience with the Markets
A successful trader will be quick to take losses and slow to make profits. Beginners take profits quickly because they’ve never had them before and fear to lose them. Wealth isn’t built in a day or a week – it’s slowly accumulated with consistent trading strategies.
Discover Your Inner Personality
There is no better place to uncover your true self than in trading. The markets have a way of exposing your flaws and dragging you out of your comfort zone. It is imperative that you match your trading approach to your personality or else you will be stuck in a battle which you cannot win.
Think for Yourself
This is one of the hardest traits to acquire, but all highly successful traders think for themselves. Don’t let others influence you or change your mind about a position. Turn off the talking heads on CNBC, and come up with your own ideas.
Commit to Learning
The markets are constantly changing and adapting, you must do the same. Before you begin trading a new market you must fully understand the way that it works. Some of the world’s greatest traders can be found trading the futures markets. These traders have tens of years or experience and have traded through the various cycles of the market, what makes you think you can beat them?
Commit to Doing Whatever It Takes
No one said trading is easy. The most rewarding things in life come from the result of hard work. This trait applies to all aspects success, but as it relates to highly successful traders most started with little or nothing in terms of trading capital, do not have an Ivy League education, and built their success in the face of people telling them it couldn’t be done.
Being an Early Riser
While most global stock exchanges open after 9:00 am, a successful trader wakes up well before to plan for the day. If you’re trading forex, the market never sleeps between Monday and Friday, which means you should wake up early in order to anticipate key market-moving events. By rising early, successful traders can set up their charts, prepare for market-moving events and get a sense of what’s happening in international markets.
Self-Esteem and Self-Worth
The modern education system focuses great effort on self-esteem and self-worth in the student population, but the transition into adulthood may undermine this effort, leading to negativity, cynicism, and self-doubt. Each of these attributes has an impact on profitability because the emotional nature of buying, selling, and assuming risk requires visualization of the positive outcomes.
Conclusion for Successful Traders
As you can see, becoming a successful trader isn’t some abstract concept that only a select few can attain. It’s available to anyone who is committed and passionate about what they do. These characteristics are not innate but can be cultivated clear intent, practice, and motivation.