What does it take to be a successful trader?

What does it take to be a successful trader?

Many people want to get into trading to make some quick profits easily. This can be a dangerous way to think about trading, as it does take expertise and there is a lot to learn first. Most people who start trading straight away without too much knowledge are struggling to make money trading forex or other assets online. This is because they all seem to have the same faults. If you are going to trade in the future or you are already trading, but losing money, then this a must read for you.

Know what you are doing

The first advice to everyone, if you are trading or planning to start trading, is that you must know what you are doing. If you don’t, you will lose money. If you have taken some course to learn about trading or you have read a lot of about it, you probably have a good understanding of the markets, what is affecting the markets and so on. This is a good start, but you will need to know the reasoning behind why you did something. You are entering trades, closing trades, setting stop-losses and take-profits, but without proper reasoning behind your actions. You need to know why you are doing these things, meaning that you need to have a trading plan.

Traders that do not have a trading plan are most probably the ones who are losing money on trading instead of making it. Following a trading plan or a set of rules, every day is boring for most people. Remember that you are trading to make a profit, so it is important to have a good trading plan and always follow it. The trading plan you are following has to be proven profitable in the past and you have to feel comfortable trading within the rules of your plan. Take the time to create your trading plan and actually follow the rules.

You have to really want it

This is a simple rule that applies to almost anything in this world. If you don’t want it enough, you probably won’t achieve it. The people who are successful are truly wanting the things in life, they work hard towards it. If you are not a profitable trader, but you really want to make the profits, you simply have to put in the time to learn to trade. If you are not willing to do this, you don’t want it enough. Learning to trade takes time, it is easier to learn for some people and some find it harder, but it is possible and everyone can do it if they want to.

Another thing is to take the steps needed to start actually trading. First, you need to invest the time and then you have to actually invest your money to start trading. A lot of people don’t want to take these risks, which is understandable, but then trading is probably not for you. When you understand the markets and you are willing to spend the time and money, you are on the right track.

Trading mindset

The last thing to have is the correct mindset. This tip also applies to other things than only trading. If you don’t believe in yourself that you are able to do something, then you probably aren’t able to do it. If you don’t believe in yourself, then who will? As said, this doesn’t apply only for trading, but it is very important in trading as well. If you believe that you are going to be successful, then you are already a step closer to being successful.

The mindset is important as to make a profit in trading, your winnings must cover your losses. Don’t think you would win on every trade, but try to minimize your losses and maximize your winnings. To achieve this you have to have a working trading plan and you have to hold positions long enough. This means that you have to be disciplined and not close deals immediately you are going to make a little bit of profit. Of course, if you just want a little bit of profit that will most probably be outweighed by your losses, then do so. The traders that are actually profitable and trading for a living are maximizing their profits by holding positions long enough to make a bit extra profit compared to other traders. This isn’t easy at first and most people don’t have the mindset and courage to do so, this is also why most people aren’t profitable in trading.

Conclusion

The three tips in this posts are very common tips that apply to almost everything in life. But following them in trading is very important to make a profit.

Knowing what you are doing is very important in trading as there are a lot of things you have to be sure you understand. Of course, you learn as you do, but in trading, this will first make you lose money. In learning completely other things, the losses wouldn’t most probably be financial and therefore learning by doing is a very good idea. In trading, I feel you really have to have a basic knowledge before entering any trades. Take the time and learn, maybe take a course or start learning by yourself, as long as you will get the knowledge.

You have to really want it as otherwise, you won’t achieve it. Most people will say they want it, but won’t do any work towards it. Wanting and really wanting are two different things. If you really want to be a successful trader you have to make sacrifices to achieve. Wake up one hour earlier to study or take the time from something else and you will achieve the profits. This is something most of the people won’t do as it needs work. If you are not willing to do anything to achieve it, you won’t achieve it.

The mindset ties the two first tips together. You have to have the right mindset or you won’t be doing the work to achieve anything. If you have gathered the knowledge about trading and you have made a trading plan for yourself, you are doing work towards it and you have the mindset. If you want something enough, you will have the mindset as well.

 

I am living in London. I am an e-entrepreneur. I have been working in the financial trading industry as a professional since 2003. I am a fan of Chelsea team. I am married. I like cycling.

Submit a Comment

Your email address will not be published. Required fields are marked *