If you thought trading was an easy way to generate loads of money without doing any hard work, then you are absolutely wrong. Trading is about developing strategies, testing them and improving them over time to achieve positive results. It is about having some characteristics which will allow you to implement the strategies effectively, regardless of the conditions in the market.
It is not possible that any newcomer will have these characteristics in them. But if they have the passion for the industry, they will work towards developing the characteristics that will positon them for success.
You must remember one thing that successful traders are not born successful. In fact they have to work hard to overcome failures, learn from their mistakes, develop winning traits and then they are able to taste success.
In this post, we are going to highlight some characteristics that you must develop if you are looking to achieve success in the industry.
While movements take place in the financial markets day and night, trading is something that only becomes possible when there is opportunity available. Sometimes, traders have to wait for hours between trades. Trading is not something that can be done continuously. But, some traders fail to understand this and just because they don’t have the patience to wait, they keep jumping in and out of trades.
It is very important to have patience when you are trading because if you lack this characteristic, you will end up making bad trades and poor decisions. However, if you manage to develop patience over time, you will wait for the right timing to execute the trade.
The market conditions change constantly and there are no two days which will ever be the same. For traders who are used to following strategies taken off the internet or those outlined in textbooks, the ever-changing conditions in the market can become a real problem. The reason is that they will try to use an outdated strategy at times when it will work no more. So when they enter the market and see that things are different, they will have no idea what to do next.
This is where it is necessary for traders to develop adaptability. They should be able to implement strategies in all kinds of market conditions. In fact, they should know when to use the strategies and when to avoid using it. for example, if the volatility on a particular day is high and you know your chosen strategy is more suitable for low volatility conditions, then you should not use it. Knowing when to implement strategies requires a great deal of mental flexibility which doesn’t come easy. It takes time and patience to develop adaptability. If traders are able to adapt to the market conditions, they will be able to achieve success.
The sun doesn’t shine bright in the financial markets all the time. Sometimes, the days are rainy and sometimes they are stormy. If you want to achieve success, you will have to embrace failures. You cannot expect to win all the time because this is simply not possible. Even the most successful traders don’t win all their trades. They lose very often and yet they keep on moving forward.
Your failures shouldn’t discourage you from executing more trades. It should motivate you to become better. Remember, successful traders lose a lot of trades, but when they win, they manage to recoup their losses. The amount they win with their trades is bigger than what they lose and this is what helps them achieve positive results at the end of the day. Losing trades should not make you lose your interest in trading. What if the next trade you are planning to miss just because you are disappointed with the results of your previous trade is a winning one? You will miss out on the opportunity altogether if you don’t execute the trade at all.
Your judgement shouldn’t be affected with how many trades you are losing. In fact you should be focused on improving your results for the next trades. Focus requires you to have mental strength and if you develop a strong mental attitude towards trading, you will see a difference in your results.
Getting some help with trading is okay, but you must realise that you are the one who will be making the decisions and you are the one who will be responsible for your choices. Initially you may read books and articles, watch video tutorials and lessons, subscribe to trading programs and seek help from others.
But, you need to understand that trading is a solo game and to play it efficiently, you need to develop independence. You cannot rely on other people all the time. when you take full control of your actions, you will see that you are walking in the right direction. Independence will give you clarity of mind and it will save you from the doubts that will have from all the opinions you have been getting from others. In any case, it is always best to do what is suitable for you.
Being independent doesn’t happen easily, but if you understand its importance and take responsibility for your choices, decisions, education, training and trading outcome, you will get better rewards down the road.
When you develop independence, you will build your own trading toolbox in which you will have everything you need to deal with the financial markets, its volatility, changing trends and patterns and everything it has to throw at you.
You can even consider getting your hands on an effective trading tool like the Tesler App and keep it in your toolbox to use it at times when you need help. Modern day trading tools are highly advanced and they are more reliable than most mentors and subscription services. People may not be there for you always, but computer programs will always be.
What happens in the past should stay in the past, unless it is historical trading data which can help you make future decisions. If you have ever played a game of chess, you will know that you will have to take your next move based on the move of your opponent. Basically, you will have to plan your move and then make a decision.
The same goes for financial trading. Your planning must be based on what’s going on in the market presently. If you are looking to execute a trade in the next 10 minutes, you should take into account all the information that is received within that period of time.
With a forward-thinking approach, you will know what to do in your next step. You will have developed a set of rules that you will follow and stick to. Just like the other characteristics, it is hard to master a forward-thinking mentality, but if you practice and stay focused, you will notice how beneficial it proves to be.
Your mind will be constantly thinking about what’s going to happen next and how you can approach those moves. Basically, it will enable you to act without hesitation.