<p id="isPasted">For those serious about trading for a living, the following is a list of characteristics found in every highly successful trader. Realize that 1% of the people who play this game take 99% of the profits. That means 99% of people who call themselves “traders” are forking over all their money to the 1% of serious and consistently profitable traders.</p><p>The list of typical success traits such as discipline, focus, passion, commitment, determination, and confidence can be found in almost every trading book and, if applied, the right can act as a framework for achieving success in all aspects of life.</p><p>If you want to make it in this game then strive to acquire these traits of highly successful traders…</p><p>Discipline: It’s all or nothing</p><p>So you think you’re disciplined? If you’re not disciplined 100% of the time, you cannot call yourself disciplined. This is something you must exercise each and every time you place a trade. If you break your rules just once, you cannot call yourself disciplined.</p><p>As an active participant in the markets, there WILL be times when you feel that it’d be okay to act on your intuition, not following the plan that you so diligently laid out, because “this time is different” and “I will only do it once” well, unfortunately, it doesn’t work that way. The notion of “Cut me a break and I’ll never do it again” causes traders to blow up their accounts. You MUST live to trade another day.</p><p><strong>The market pays you to be disciplined.</strong></p><p>Losing the right way</p><p>Trading is a game of statistics, and as such nothing is 100%, you will have losses, every trader does, what separates the highly successful traders from the perennial losing traders is how they lose. The following 3 rules are indisputable to success as a trader.</p><p><strong>1. Always use stops</strong></p><p>A trader who doesn’t use stops is at the same risk as one attempting to cross the Atlantic Ocean…by rowboat. You may have a target in mind, but once the storm comes, you’re almost sure to drown.</p><p><strong>2. Never turn a winner into a loser</strong></p><p>Once your trade is going in your favor and crosses a pre-determined target you must get your stop to break even. This allows you to limit the number of full stop-outs, putting you in control of your risk.</p><p><strong>3. Never take a big loss</strong></p><p>If you’ve followed rules one and two then rule #3 will result by default. The only type of loss that can hurt you is a big loss and can wipe out days, weeks, or even months of profits. As a starting point, never risk more than 1.5% of trading capital per trade.</p><p>Follow these three rules to manage your losses and the profits will come. Don’t follow them and it will be like swimming with an open wound in shark-infested waters; you will be torn to pieces.</p><p><strong>Commit to learning</strong></p><p>The markets are constantly changing and adapting, you must do the same. Before you begin trading a new market you must fully understand how it works. Some of the world’s greatest traders can be found trading the futures markets. These traders have tens of years of experience and have traded through the various cycles of the market, what makes you think you can beat them?</p><p>Make the promise to yourself to never stop learning and you find yourself constantly exposed to new opportunities as the market evolves. However, it all begins with the fundamentals, so know your market.</p><p><strong>Discover your inner personality</strong></p><p>No better place will you uncover your true self than in trading. The markets have a way of exposing your flaws and dragging you out of your comfort zone. It is imperative that you match your trading approach to your personality or else you will be stuck in a battle that you cannot win.</p><p>Highly successful traders know themselves better than any other industry professionals. In trading, your emotions are tested to their breaking point, your reactions to winning and losing are exposed, and your willpower to persevere is challenged. Just like in golf, there is no hiding behind anyone else, you are held accountable for your actions as a trader.</p><p>Be honest with yourself; build your trading plan to fit your personality.</p><p>The clarity in your plan</p><p>It is true that most plans fail, but you will be far more likely to succeed if you have a trading plan than if you don’t. Ask yourself the following questions and refine them until you have a crystal clear framework for moving forward as a trader…</p><ul type="disc"><li><p>What is my motivation to become a trader?</p></li><li><p>How will my life suffer if I don’t give 110% in becoming a trader starting right now?</p></li><li><p>What is my current net worth?</p></li><li><p>How much money do I need to support myself, my family, and my current lifestyle?</p></li><li><p>Do I have a habit of making impulse purchases?</p></li></ul><p>A self-analysis of yourself should be answered honestly and clearly to act as a framework for building a career as a trader or any other endeavor. The book, Think and Grow Rich by Napoleon Hill is one to be read over and over again, as the principles directly apply to trading and to leading a successful and fulfilling life.</p><p><strong>Entry and Exit:</strong></p><p>The 1% of traders wait for the stock to reach their price, they don’t jump into the trade. Patience is the key to successful trading and they only enter when markets show a clear trend not when they want to</p><p>While exiting traders use price action and a combination of patterns to find the right reversal, That’s why they carry traders with probable profits.</p><p><strong>The risk to Reward:</strong></p><p>This is very criterion that many traders fail to recognize, most retail traders are not aware of how to arrive at risk to reward ratio. If your risk to reward ratio is not attractive there are more chances that you will lose in the long run</p><p><strong>Prediction:</strong></p><p>Pay close attention to charts projected by top technical analysts. You’ll find there’s no prediction, Predicting market direction is what the 1% will never do. Rather have two theses of what you’ll do if stocks break support and bounce from resistance. Your only job is to find stocks at support and resistance, it’s a market role to find the direction. Stop predicting and you’ll start earning money.</p>
<p id="isPasted">For those serious about trading for a living, the following is a list of characteristics found in every highly successful trader. Realize that 1% of the people who play this game take 99% of the profits. That means 99% of people who call themselves “traders” are forking over all their money to the 1% of serious and consistently profitable traders.</p><p>The list of typical success traits such as discipline, focus, passion, commitment, determination, and confidence can be found in almost every trading book and, if applied, the right can act as a framework for achieving success in all aspects of …</p>
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