Successful Traders

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What makes the best traders successful?

By Tom 

Are they "lucky"? Have they discovered some "secret" indicator?

NO. They've learned the truth about trading. 

Trading success is a simple as 1-2-3.
  • Step 1 - Understand what trading is really about;
  • Step 2 - Learn what a winning day trader does;
  • Step 3 - Then do it. Continually.

What Makes A Successful Day Trader?

A successful day trader is someone who follows a trading plan. Your trading plan tells you when to enter a trade, and when to exit. An entry point. An exit point - either a target or just to get stopped out. Parabolic SAR, lower Bollinger, natural support and resistance, volatility stop. Whatever. Any trader must understand the timeless law of probability. That with a positive bias and a sensible approach to money-management (cutting your losses and letting your profits run), eventually you'll come out ahead. What makes day trading so challenging is the speed. You simply execute trades faster, and compound your profits faster - which is why we do it. That's why a day trader is NOT a stressed-out, valium-swallowing, adrenaline junkie who lives from one minute to the next. A good (i.e. profitable) day trader knows that it's just another trade. It's all just statistics in action. The important point here is consistency. Like the heads / tails example, the one time you don't take a trade is when the market takes off and never looks back. Day trading is boring. Keep it that way.

When you learn how to trade you look at historical price action on charts, you do this over and over until pattern recognition, plotting trendlines, using Fibonacci, Pivots Point and Speed Line comes as second nature. But there comes a time on your trading journey where you will experience a "CLICK", that is the moment your brain evolved into the ultimate trading computer. From here you are done practicing on historical data, you get in on the market and trust the trading techniques and concepts. Trade for profits, and understand that Intellectually we know there’ll be losses … but dealing with them emotionally whilst trying to stay true to your rules … that’s very tricky. 


The elements of successful trading.

They are quite extensive, including: 
  1. doing what’s required on a daily basis, going through the trading process; 
  2. have a strong enough money mind-set to have sufficient funds to trade with; 
  3. having a business plan to guide your trading; 
  4. having a good system or perhaps two or three good systems; and 
  5. having proper position sizing in place.
Behind all of those elements is the key to everything, your personal psychology. 

Working extensively in these five areas requires immense commitment, the same commitment that is required to become a brain surgeon. And it makes sense, great traders make a lot of money, but you’ve got to be willing to do what it takes to be successful.

The Heart of Discipline:

Your ability to trust yourself will determine your ability to be disciplined in trading. Without trust there is no dependable relationship between you and yourself, between you and another person, or between you and your faith in your ability to follow your own trading rules. All of these relationships exist, whether you are consciously aware of them or not, because your conscious and unconscious mind divide up into parts, which have different and often competing roles and belief systems.

Making rules that you can live by

Is it ever okay to break your trading rules? The answer is NO, NEVER!!! If you have anticipated all contingencies, you will have a rule for everything, so you won't be breaking rules. You'll be following the contingencies. For example, if you say, "I'm going on a diet and I'm never going to eat anything fattening," suddenly you will have an overwhelming urge to eat a piece of chocolate cake. However, if you will make the rule about going on a diet to include a periodic slice of chocolate cake as part of the diet, then you will not be breaking your rules. The result is that you will stay on your diet.
The same principle of creating rules you can live by applies to your trading. Your rules must cover special conditions and exceptions. When they are part of your rules, you will find it not only possible, but easy to stay within your rules at all times. The message that you then send to your unconscious mind is that you can be trusted.

Learn the life changing skill skill of online trading. Register at https://www.forexcollege.co.za/




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