Saturday, June 7, 2014

Five Traits of a Successful Trader

Traders make the whole market move. The make it go up or go down.

"I believe the very best money is made at the market turns. Everyone says you get killed trying to pick tops and bottoms and you make all your money by playing the trend in the middle. Well for twelve years I have been missing the meat in the middle but I have made a lot of money at tops and bottoms." - Paul Tudor Jones.

Success is not always luck, it could be sometimes but becoming successful in every trade a trader makes is a beautiful art and art always needs mastery. Here's a list of traits that a successful traders have. They are:

1. Emotionless:Trade and act like a doctor does in an operation room.(Handle their motions)

Emotions makes us alive. They help us to show with others how to feel and perceive certain happenings. Emotions makes the communication with people around us. In addition to that it changes how we feel. If we feel that others are worried about a particular stock we are holding and if we start to worry too, then it's certain that we might be missing something in it. The logic.

  "The markets are unforgiving, and emotional trading always results in losses." - Alexander Elder

2. Willingness To learn:

 A person who never made a mistake never tried anything new: Albert Einstein
Learn from the mistakes. This even applies to life's other aspects too. Mistakes are always good teachers. Successful traders always learn, they learn from mistakes, they learn from books, they learn from news papers. They are always updated about the market. They read, listen, talk and learn about the market before they step in and apply what they have learnt.

Being ignorant is not so much a shame, as being unwilling to learn: Benjamin Franklin

3. Discipline:
"No profession requires more hard work, intelligence, patience, and mental discipline than successful speculation." - Robert Rhea

Discipline provides balance in any area. That could be the main reason successful people are not losing discipline no matter which field they are involved in. Trading demands discipline because being slow or being aggressive will guarantee you loses. A trader may earn large amount of money in a particular trade, but if the trader loses his/her discipline then it's certain that the trader will lose all of it. They even balance work and family life.

4.Appropriate Decision Maker:

Most of the millionaires are excellent decision maker. They know when to hold on and when to loose. They are the players in the game. They know when to procrastinate the decision so that they could gather information about the deal. If there is possible situation of loss then they decision to choose the strategy that will minimize their loss and optimize it.

Successful Traders are decisive and they are carefully decide where to focus their energy. They are aware about their state and body conditions. They decide what will happen to them. They have high locus of control.

5.Successful Trader are like other successful people, They find Mentors, ALWAYS: 

It's not that mentors come to start ups, but start ups find their mentor. When people are willing to learn they all are about to find someone who could teach them. This happens in trading too. There are successful traders out there who always have someone whom they could talk if there is any doubt. Successful traders always search for their mentors.

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