The Habits of a Successful Trader

 

Many think trading a hobby but that is not true. Trading is just like any other occupation. It needs proper time, concentration and motivation to be successful. People who know very little of it believe it to be extremely easy. That is why, when they finally start trading, their expectations are crushed and they give up, mostly blaming whatever platform they had been using.

In truth, trading is a complex profession. It requires much focus and attention. It is not a child's play. You have to behave like a professional in order to make a living through it. Let me share a few ground rules that every trader must follow in order to be successful.

1. Treat Trading as a Business

Trading is not just a hobby. If you want it to bring you some profit, you should work on it like you would for any other business. Give it proper time. Learn all about it before entering the market. Consider your trading strategies. Try them out one by one and stick to what works for you best. 

Planning your strategies is one of the very basic steps for any business. Like every other business, plan ahead. Think of all possible outcomes and prepare yourself to act based on any on them. Learn from all your setbacks and prepare yourself to come back even stronger. A loss is not really a loss if you're learning something from it. It is just one more step towards your goal. Know that, "Hard work, persistence and consistency are the keys to success."

There is no such thing as a short-cut. You'll have to work your way up. If you try to resolve to the "short-cuts", your success will be very short-termed. On the other hand, if you work to gradually climb the ladder of success, it may last a life time.

2. Read Up!

Educate yourself. Do not go into the financial market blindly. Read up on all aspects of the financial industry before entering. But remember, entering the world of finance is not the end. In fact, it is just the beginning of a new journey.

Make sure you are informed of everyday technical and financial analyses. Stay informed of all the news that may affect the movement of currency pairs in any way and plan your trades for the day based on those facts. Trading is not a guessing game. It requires proper knowledge and technique to be a successful trader. Remember, a wise decision is always an educated one!

3. Make a Schedule

Like any working person, set your routine. Get up early in the morning. Go for a walk or meditate in any way you like. Have a hearty breakfast. Set your work station in an order and get ready to work. Read up on all the latest news. Analyze your charts and make a schedule for your trades of the day.

Different markets open at different times. Plan your whole day based on what you plan to trade. You can't go and open a trade any time of the day. So, plan your whole schedule based on it.

Make sure you stick to your daily schedule in order to not over indulge in your work because it is important to keep a healthy lifestyle, no matter what you do. Know that your health is just as important as making money, if not more. Maintaining a healthy work-life balance is the key to a healthier, happy life. We all know that "All work and no play makes Jack a dull boy"!

4. Set SMART Goals

As a newbie, we often set goals that are impossible for us to achieve. Most people see trading as easy money and that is why they give up just as easily. They set goals too high and get demotivated when they don’t reach their goals in a given time.

The key here is to set smaller, more realistic goals towards achieving your main aim. Sub-divide your goals into smaller steps and work towards achieving them all, one by one. This way, even if you don’t reach what you were aiming for in a day or a week, you will still stay motivated if you've reached most of your sub-goals.

Setting more realistic goals means there is a better chance of you achieving it. Moreover, it will serve as an automatic boost of confidence and motivation. Like any other business, you have to be your own cheerleader. Do not let unrealistic goals spoil the whole sport for you.

5. Control your Sentiments

Sentiments play an important role in our daily life. It won't be wrong if I say that we are governed by our emotions. With time, we are all running out of patience where patience is still one of the biggest virtues.

Patience plays an extremely important role in trading. Many people forget that losing is also a part of trading. You cannot always win a trade. There are always gonna be some losses so you need to be prepared for that. Try to not lose your cool when you lose a trade and stick to your trading plan.

Instead of making hasty decisions that may lead to even more loss, focus on the good and try to learn from your mistakes. This way, you can make progress even with a loss. That is how you can progress. Keep a positive mindset and keep trying and learning.

You can always use Take-Profit and Stop-Loss orders in order to make sure you don't give in to anxiety. Let's be real, we have all done it in the beginning. Keep your emotions in check. Don't let emotions like over-confidence, anger, or anxiety overwhelm you. If you give in to your emptions, you're gonna end up losing your much precious time and money.