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Successful traders’ tips.

Trading in the financial markets is not for everyone. Some people are able to withstand unfavourable market conditions and psychological pressure related to temporary drawdowns of the trading account, while some aren’t. Although the number of those people who can manage tensions is small, even fewer traders can do that successfully. There are no rules that describe how to become successful in the financial markets, however, many Wall Street legendary traders have a number of common features and abilities.

- Successful traders are able to challenge their own instincts, acting in a different way than their intuition tells.

- Profitable traders can keep tight discipline and maximum efficiency. The trading strategy does not matter and there is no difference which type of analysis do you use - technical, fundamental or price action. The key factor here is to stick to the system in a continuous way. A good trader knows all of the strategy’s advantages and weak points, making deals based on this exact strategy only. “The success secret is in the goal’s constancy”. This proverb means that special entering and exit techniques must be developed.

- Successful traders calculate risks and make decisions which are lowering their risk vulnerability. Profitable traders don’t like losing money and manage losses until they became too large, even if throwing the towel out is required and wrong decision needs to be admitted.

- At the same time, successful traders aren’t afraid to risk and make mistakes. They have a chance to do something wrong, it happens. Actually, they’re brave enough to make mistakes because people usually get the most important lessons from largest fails while trading in the financial markets.

- Successful traders are not shy and afraid to accept losses. In fact, they’re ready for mistakes, knowing that limiting losses and saving the capital is the key element of trading.

- Great traders master the skill of the market conditions analysis. Many traders use just one type of analysis or take just one source of research. But a much better picture could be gotten comparing different information and charts.

- Successful traders lead a balanced lifestyle. The thrill is traditionally brought by profitable deals and people are vulnerable to the addiction of that. But good traders know when to stop and, more importantly, he has something to switch to, whether that’s family, friends or hobby.

- A profitable trader grows patience. That means that profitable positions have to go their way. That also means that if the market reverses against you, then you need to be patient enough to repeat the attempt, implementing a brave, flexible and confident approach to the market.

- A good trader is keen on success. The trading requires continuous and stable efforts but not random cavalry charges. Determination of the success side can be decisive when the market is in turmoil just because many players leave it at that time.

- A successful trader is well-disciplined. The market research and deals analysis have to be made even when there’s no mood to do that. The discipline also suggests the strict implementation of the trading system. You cannot sell or buy just because you know that someone else is doing that.

- Successful traders know the technical difference between defensive and aggressive behaviour and the best time to use both approaches. You better make sure to save your capital first and then think about profits.

- Profitable traders remain as emotionally detached as possible. You need to learn how to ignore Wall Street rumours. They can withstand the temptation to join the crowd. Limiting losses with stop-loss orders allow traders to keep objective when defending the profit reached. That also gives the confidence to take money off the table. You might miss the lowest point for buying and the top of the market to sell but if you put the stop-loss order you can sleep well and do other things.

- Successful traders know themselves and objectively assess own strengths and weaknesses. You need to fight with your disadvantages and apply strategies based on your strong points.

- A profitable trader knows his portfolio. Do not ignore an asset and keep records of your deals.

- Successful traders stick to the rules set by themselves. It’s easy to lose your head when the market moves fast. That’s why the trading plan has to be developed in a quiet environment earlier, and its execution can bring profits.

Profitable trader
Source:Bid For Position

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