It takes a special type of character to be among the top traders and while education and experience certainly help, the very best traders have an edge that is hard to define without taking a close look at their behavioural habits.
Winning traders commonly share some key defining characteristics that set them apart from the crowd. These characteristics are more mental than anything else and they naturally revolve around a sense of positivity. Specifically these characteristics can be viewed as follows.
Discipline.
The ability to stick to a plan despite distractions is one of the key elements of trading. A sound plan is only as good as the person following it. Discipline is tested constantly in a trading environment. There are constant distractions, testing price fluctuations and potential loss positions that are sure to test a trader’s nerve.
Discipline requires a mix of confidence, patience and resolve that allows you to stay the course and make decisions based upon data and evidence rather than the gut reactions of fear and greed. Cool heads always prevail. Maintaining self discipline is not to be confused with stubbornness. Rather it is the ability to have a set of rules and to stick to them.
Self-Confidence.
The trading environment is not a place for people with self doubts. Self esteem is one of the most undervalued characteristics of traders. Great traders come to terms with self doubt and realise that to be successful and to realise consistent wins they must believe that they are themselves worthy of the fruits of their labour. As they gain experience they appreciate that self-confidence grows gradually in line with the right decisions that they consistently make. This developing self –confidence gives them the power and tenacity to ruthlessly study each day’s trading, and in a sense reaffirming that their skills, knowledge and “gut” helped them to achieve the best possible outcome. This ability to self analyse, reflect, grow and self affirm becomes a key asset in the winning trader’s make up.
A successful trader understands fear and isn’t spooked into reckless decision making by bad news. They have the confidence to take a deep breath, apply logic and bring their skills to bear. At the same time a great trader understands that greed can be a killer. Self–confidence often involves the ability to take a profit rather than to chase a bigger one.
A balanced lifestyle
No trader is an island. They all have personal lives and as with all professions, those personal lives flow over into and have an effect upon professions. The trader that has a balanced personal life and isn’t dealing with personal issues can focus their energies on trading when they are meant to.
Top traders look after themselves physically and emotionally. They watch what they eat, exercise regularly and maintain healthy relationships. Physical and emotional well being enhances the decision making process. Clear minds make good decisions.
Ultimately, successful traders share positive characteristics that increase their abilities to generate positive results.
