Key components/characteristics in the pursuit of long-term success in financial market speculating include well-honed trading abilities and a clearly defined edge. But despite the best efforts of all the books, websites, and mentors, trading performance is still negatively impacted by negative attitudes and psychological barriers from the point of preparation to the point of exit. Maybe this explains why successful traders have similar psychological traits.
A good trader should make sure to:
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Positive Attitude :
Successful traders have a healthy dose of optimism, even when it isn’t supported by the most recent profit and loss statement because they are aware that drawdowns are only temporary and that they have the tools necessary to recover losses. They also realize that trading is a zero-sum game in which there are winners and losers, and they constantly picture themselves on the winning side, regardless of immediate outcomes.
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Balance Away From the Market:
Successful traders invest the same amount of time in their personal lives as they do in market research. They take good care of their body by eating a balanced diet and are aware that recreation is an important activity for maintaining optimum trading performance. When their own attempts to achieve balance fails, they also turn to the advice of clerics, therapists, or gurus.
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Commitment:
Solely focuses on trade. Anything that would prevent you from focusing entirely on the markets is put off until after the trading day has ended.
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Introspection:
Regularly evaluates one’s own strengths and faults. Strategies are developed to enhance the advantages and counteract the disadvantages. Successful traders are more focused on how they compare to the criteria they have established for themselves than on how they compare to others.
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Self-Regulation and Improved Awareness:
Whatever the situation, reacts calmly. The effective trader is not so excited by wins or losses that he loses his ability to think clearly.
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Realistic:
Establishes attainable objectives. Never gamble recklessly in an attempt to “increase” your chances of winning big. acknowledges that losses are unavoidable regardless of a trader’s skill level and that traders have no personal control over the market.
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Discipline:
Any success ladder must be climbed with discipline. Traders who exercise discipline in their research, adhere to a plan, determination of objectives, and exit are frequently successful.
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Patient:
Recognizes that rapid enjoyment is uncommon. does not follow the market. knows there will always be opportunities in the future. Discipline and patience go hand in hand. Day trading, like all forms of trading, necessitates a lot of waiting, as was already mentioned. Jumping into, or out of, trades too early or too late is a rampant problem among new traders. When a trader is entering or exiting the market at unfavorable times, they will frequently say, “My timing is off.” One could also say, “My patience is off.”
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Adaptable:
Adapts to unforeseen occurrences and shifting situations. acknowledges that while a trader must abide by a set of rules, those rules may need to be altered when market conditions change. In all market conditions, traders must be able to execute their strategy in real-time and be aware of when to exit. In many cases, failing to adjust to the present state of the market will cause a rapid loss of capital.
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Responsible:
Doesn’t place blame for mistakes on others. accepts danger in return for the potential of a suitable payout.
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Thinking Creatively:
Transcends the obvious to see. draws inspiration from a wide range of sources and isn’t hesitant to try something new or unconventional.
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Self-Confidence:
Believes they will be successful. Do not let failures weaken that conviction. Successful traders avoid dwelling on past failures unduly because they understand that they cannot be undone. They also understand that each deal is independent of the past and presents a fresh chance to get things right.
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Have a Trading Plan and Do Homework:
Market analysis takes hours of time from successful traders. They keep track of charts and update their notebooks with the tactics they’ll use the following trading day. These traders are more knowledgeable about the market’s current trends and are able to recognize the strongest industries and the strongest companies within those industries. They are aware of the level they would be entering and the rough goal they have for that specific position. Good technical traders, on the other hand, follow the market flow rather than worrying about the news cycle.
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Limit Your Trading:
One of the biggest errors traders make is overtrading. Disciplined traders trade sparingly when the markets are choppy and refrain from trading when there are no potential trades on the horizon.
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Ability to Distinguish Real News from Fake News:
Successful traders make their own decisions to achieve their own goals without being swayed by the hoopla surrounding the news.
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Never Be Alarmed By Losses:
Successful traders exercise caution and employ money management strategies. Always accept losses as a learning experience, and then try to figure out why the markets moved against you. Even trades that resulted in losses might teach one valuable trading lessons.
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A multi-award-winning blogger and advocate for OFWs and investment literacy; recipient of the Mass Media Advocacy Award, Philippine Expat Blog Award, and Most Outstanding Balikbayan Award. Her first book, The Global Filipino Bloggers OFW Edition, was launched at the Philippine Embassy in Kuwait. A certified Registered Financial Planner of the Philippines specializing in the Stock Market. A recognized author of the National Book Development Board of the Philippines. Co-founder of Teachers Specialist Organization in Kuwait (TSOK) and Filipino Bloggers in Kuwait (FBK). An international member of writing and poetry. Published more than 10 books. Read more: About DiaryNiGracia
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