The Qualities and Habits of a Successful Trader

Qualities and Habits of a Successful Trader

Being a trader is relatively easy, but if you feel a true vocation for trading, you will not want to stay in one more, you will want to be one of the best: you will want to be a successful trader.

In today’s article, we give you some guidelines to achieve this, we talk about the qualities and habits that must be promoted and carried out in your career as a successful trader.

Qualities of a winning trader

Is Trader born or made? Perhaps both statements are true. You are born with a certain curiosity, you grow up with a certain concern to achieve financial freedom and you continue to search for the most appropriate training to achieve that goal.

Now, do you have to develop some specific qualities?

It is said that a trader as a general rule is an introvert with commercial skills. But really what a successful trader develops is the ability to put the following qualities into practice in trading and in life:

  • Discipline and perseverance: a trader becomes successful by being constant and disciplined. Constant in practicing your trading method and strategy, which will lead you to the next quality …
  • Confidence in yourself and in your system: constant practice will strengthen the self-confidence and faith in the system you have chosen to trading.
  • Optimismwhat is a trader without a dose of positivity? Face trading without complexes or fears.
  • Honesty: an essential quality in a trader. There is no use fooling yourself, giving yourself excuses if an operation goes wrong. You must be able to correct your own strategies to protect and increase your personal finances.
  • Patience: another quality sine qua non. A good trader watches and waits for the opportune occasion before entering the trading zone. He does not launch into investing without rhyme or reason. You cannot be a successful trader if you are not patient; in fact you will not be able to trade correctly. However, if you take advantage of the wait to analyze and control risks, there will be times when you understand that not taking action is the best decision.
  • Be proactive: in the same way that you have to be patient, you have to know how to anticipate and have initiative to generate solutions to future needs.
  • Curiosity: that curiosity that we mentioned at the beginning of this post must be maintained. Make an effort to know the fundamentals of the market, be restless to carry out different actions -always with a plan behind to support you-, to analyze different results. Trading is a long-distance race.
  • Commitment and determination: a good trader observes, solves doubts, studies and never stops educating himself. This commitment will ensure that you know in advance what type of operations will surely be successful and which will involve risks. But in addition, a trader, before knowing success, knows that he can fail and go through difficulties. This experience helps not to get carried away by emotions and to be constant in the search for that success when investing online.

Whether you want to dedicate yourself to trading to live on your investments, because of the adrenaline that being able to earn a lot of money causes you or to achieve your financial freedom, the triumph will not come to you by sheer luck.

Dedicating yourself to trading implies perseverance, analysis and patience, which entails a demanding career behind it, but which is exciting and accessible to anyone who wants it thanks to training and experience.

Do you know the 10 habits of successful traders?

We have talked about the qualities or a set of them that will lead you to be a successful trader, essential in such an ultra-competitive market. This competitiveness also implies that you have powerful training on investment markets. Without this training, you will not be able to face such volatile operations as trading with signs of success.

The good news is that, in addition to qualities and training, did you know that there are certain habits that can help you achieve success in trading?

1. Do not get out of the plan

Once the market studies have been carried out, you will have created a trading investment plan that, despite possible unforeseen events, should not be changed abruptly. These plans include entry point, position size, and concepts such as take profit and stop loss.

2. Anticipate relevant events

successful trader is always on the lookout, without waiting to be in tow of the events from which the investments are articulated. You will actually have some future plays designed to put into practice before your competitors do.

3. Flexibility as a hallmark

Trading is a volatile world, where there will be times when operations or decisions that a priori seemed they were intended to obtain certain gains, do not get the expected results, if not the opposite. A trader who wants to be successful must know how to close trades without losing sight of his main objective, that of maximizing his economic benefits.

4. Always alert

A trader who wants to achieve financial freedom must have time available to be able to operate at the best time, but also must be attentive and aware of economic and social events that may cause changes in the market and offer some clue that may lead him to make your investments profitable.

5. The technique must always be present

We are obviously referring to technical analysis. In trading and the stock market, you cannot do without the essential calculation and statistical tools like the ones we teach in our courses.

6. The difference between trends and ranges.

Most experienced traders know how to enter and exit trades based on whether the market is moving based on range or on the contrary to trends.

7. Protect your earnings

Remove them regularly and do not risk too much to increase them.

8. Value a stop loss

The best thing is that, compared to the closings of the winning trades, the results of the losers are small.

9. Know, before entry, the exit price

A fundamental habit, especially when dealing with leveraged products, to know the ideal time to close operations.

10. Do not focus on cheap or expensive

Do it on current prices and their dynamics, they are what really matter.

The 10 commandments of good trading

We have already verified that to be a successful trader we need to enhance certain qualities and put into practice a good number of habits. Some may seem somewhat contradictory to you and they are; To do good trading you have to combine two ways of working:

  • On the one hand, an introspective work method: analysis, observation, learning.
  • On the other, a more active way of working, launching yourself to apply what you have learned through strategies, reading graphs, etc.

These two aspects of work become certain rules that every successful trader must follow, we have called them “the 10 commandments of good trading”:

  1. Follow the trend: before a Bull Market (bullish), better place yourself long or neutral; on the contrary, before a Bear Market (bearish), the best option is to go short or, equally, neutral.
  2. Choose the strongest option: sell those assets that show weakness and opt for the most expensive ones to sell them later at an even higher price.
  3. Set a Stop Loss: the lifeline of a successful trader when faced with a losing trade. Still, before making any decision, study it and analyze it coldly and objectively.
  4. Be patient my friend: if you lose a trade, please be patient and wait for the next chart correction before entering. Once inside, give the operation time to evolve and reach the point you wanted.
  5. Trading for trading is silly – do it when you see a profitable opportunity in the market. A successful trader does not trade crazy.
  6. If you are going to lose, it is better to do it quickly and in small amounts: cut as soon as possible and let the benefits run.
  7. Caution against a losing position: if you find yourself in that position, avoid adding a new operation.
  8. To what works, yes. Now you can add positions. In what fails or is not very profitable, slow down and decrease positions.
  9. Bad streaks: if one happens to you, it is best to close everything and wait a few days before performing operations again.
  10. Simple is more useful: bet on simple systems. Complexity only leads to confusion and loss.

These rules or commandments to be a successful trader may seem a priori too simple or simple. However, if you apply them together and above all, knowing how and why to do it, rest assured that they will help you achieve optimal results in trading operations.