5 Habits You Need to Develop to Have a Successful Trading Career
Top traders are disciplined individuals who have developed habits which support them to become better everyday.
As with all endeavors in life your current skills and abilities will start you on the road to success but may not sustain you in the long term.
It is your success strategy or plan that will lead your to become better everyday.
Many of the elements in your plan will develop into habits that support your development.
So what are the habits of a first-rate trader? The fist habit is Mastering Risk.
This is the key to long term trading.
Trading is about limiting risk and protecting capital in each and every trade.
This habit needs to be learned first not last.
If you are not in the habit of managing your risk then the risk will manage you.
The fundamental principle for this habit is to limit your losing trades to 1-2% of your trading capital.
The second habit is finding, using and learning from a Coach or Mentor.
Just like learning any new skill or striving to become better you need feedback and advice.
Many traders in the beginning over estimate their ability and can run into trouble.
Having a coach who knows how to trade can provide excellent council and advice on what you are doing well and point out where you need to develop further.
Just like an elite athlete you need regular feedback, encouragement and constructive criticism.
The third habit is to Find Boring Trades.
The life of a trader should not be exciting when you are trading.
Boring trades are more predictable and limit your risk.
Remember panic buying leads to panic selling and the losses will mount up quickly.
Limit you risk by using a stop loss.
Slow and steady is where the money is made rather than the one big one which can become the one big loss.
The fourth habit is Never Trade With Money You Cannot Afford to Lose.
Understand the risks of each and every trade and limit your loss.
Most traders over trade and put in too much money early on.
Only use a capital source that you can tolerate a 50% loss.
The last habit is to Let Profitable Trades Run and Cut Losers Fast.
This is the primary difference between first class traders and a once was a trader.
Let the profitable trades continue but if the trade turns to a loss cut fast and get out.
The foolish trader is the one who believes if I leave it a little longer it will bounce back.
Cut fast and trade again.
The 5 habits of a first class trader when applied will result in an improved trading performance.
Each of these habits needs to be put into action and will form the basis of a successful trading career.
As with all endeavors in life your current skills and abilities will start you on the road to success but may not sustain you in the long term.
It is your success strategy or plan that will lead your to become better everyday.
Many of the elements in your plan will develop into habits that support your development.
So what are the habits of a first-rate trader? The fist habit is Mastering Risk.
This is the key to long term trading.
Trading is about limiting risk and protecting capital in each and every trade.
This habit needs to be learned first not last.
If you are not in the habit of managing your risk then the risk will manage you.
The fundamental principle for this habit is to limit your losing trades to 1-2% of your trading capital.
The second habit is finding, using and learning from a Coach or Mentor.
Just like learning any new skill or striving to become better you need feedback and advice.
Many traders in the beginning over estimate their ability and can run into trouble.
Having a coach who knows how to trade can provide excellent council and advice on what you are doing well and point out where you need to develop further.
Just like an elite athlete you need regular feedback, encouragement and constructive criticism.
The third habit is to Find Boring Trades.
The life of a trader should not be exciting when you are trading.
Boring trades are more predictable and limit your risk.
Remember panic buying leads to panic selling and the losses will mount up quickly.
Limit you risk by using a stop loss.
Slow and steady is where the money is made rather than the one big one which can become the one big loss.
The fourth habit is Never Trade With Money You Cannot Afford to Lose.
Understand the risks of each and every trade and limit your loss.
Most traders over trade and put in too much money early on.
Only use a capital source that you can tolerate a 50% loss.
The last habit is to Let Profitable Trades Run and Cut Losers Fast.
This is the primary difference between first class traders and a once was a trader.
Let the profitable trades continue but if the trade turns to a loss cut fast and get out.
The foolish trader is the one who believes if I leave it a little longer it will bounce back.
Cut fast and trade again.
The 5 habits of a first class trader when applied will result in an improved trading performance.
Each of these habits needs to be put into action and will form the basis of a successful trading career.
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