Traits and Characteristics of successful Traders

MattZ

MattZ

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" The holy grail doesn’t exist in general form. But on a personal level. If you find something that works with you–your natural tendencies, inclinations, risk tolerance, and more–and if it truly does work for you, then that just might be your own personal holy grail. What works for you might not work for you forever, which means you will have to constantly adapt in order to find it again. "

That's gold.
 
Thanks for sharing these 5 traits. This really impressed me -

What works for you might not work for someone else, what works for someone else, might not work for you. Focus on what works for you in terms of your total means and capacity.
 
Becoming a successful trader is not something which can happen in a few days . It takes years to be called successful in trading and requires a lot of experience and understanding of the markets.
  • The key to success in trading is patience. A trader must stay calm and observe the trends in market.
  • Next, a trader must not lose hope from losses in trading. He must be mentally tough and not disheartened by less returns or losses.
  • A successful trader must carefully monitor and scan the market trends and find opportunities of investing.
  • He must also be a risk taker as higher the risk,higher the profit.
  • A trader must be a forward thinker and planner .
  • A trader must have an optimistic approach.
  • A good trader must be inquisitive and curious to learn new skills of trading securities.
  • He must have strong analytical skills.
 
There are several important elements of psychological part of trading process.
First of all, trader should be able to analyse mistakes and make right conclusions. Each time losing money he has to figure out the exact reason of loss - his particular action that caused such results. Then, he has to define a way to avoid situations like that in future. Without such analysis it would be almost impossible to become successful trader despite any knowledge or experience.
Second one, but not less important element is discipline. Trader should be disciplined enough to act strictly in accordance with the rules prescribed by his trading system and avoid any emotional trades. If the strategy is profitable, it would be possible to make profit using it, while any other actions may lead to losses. The other rules the trader shall follow may include maximum loss per trader and per day, limit on position size and list of conditions prohibiting trading in general like elevated volatility due to the news or technical issues or problems with network connection.
 
- learns from losses
- adaptive to changes in market situations
- patient and disciplined
- does not follow other traders
- has control over emotions
 
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