Trading in stock isn’t everyone’s cup of tea. Some people can do it and some can’t. Even among the same who can, not everybody can be successful at it. While there are no hard and fast rules on what makes or doesn’t make a successful stock trader, those Wall Street Wizards that you hear about who made the most in the least amount of time, all appear to have certain characteristics in common.
1. Successful stock traders are able to go against their natural instincts.
2. Successful traders have a simple system. No matter which technique you use as long as you stick to it. A Successful trader knows their technique and makes trades based ONLY on their system. “The secret to being a winner is consistency of purpose”. You want to improve a separate strategy for getting into a position and for an existing one.
3. Successful traders are risk Adverse. Successful traders don’t like losing money and prohibit themselves before losing too much, even if it means admitting they made a mistake.
4. Successful traders are willing to make mistakes. Successful traders have the right and ability, not to do the right thing, but to do the wrong thing. It’s the ability to make your own mistakes.
5. Successful traders don’t care about being embarrassed by taking a loss. Successful traders expect to take losses and know when to cut them.
6. Successful traders know or learn how to explore stocks. Many traders only use precise analysis, but you may want to learn to use fundamental analysis as well.
7. Successful traders lead balanced lives. We all know the pleasure of the pursuit and the stock market can be addicting, a successful trader is one who knows when to move away and can.
8. A successful trader is Patient. A successful trader lets winning positions run, but is able to back out when proven wrong. Patience can mean resilience, courage, and conviction for when markets go against you.
9. A successful trader has a biting Desire to succeed. Triumph takes steady work not a chaotic effort, a biting desire to succeed can make all the difference in educating yourself about what you want to know and sticking to your strategy when the going gets rough.
10. A successful trader is disciplined. Very disciplined. A successful trader will do what he needs to do, even if he isn’t in the mood. Discipline also means Sticking to your strategy, not abruptly buying or selling on a whim, or because of a” hot tip”
11. A successful trader knows the difference between defensive and offensive behavior, and when to use each. – protect your money first, profit later.
12. Successful traders don’t eavesdrop on rumors or get emotionally involved. To be a successful trader you have to be very hard on yourself. You have to be able to resist the urge to prove you are right and be ready to make mistakes. . You also want to be able to not let emotions affect your decisions. Setting up stop-loss points for every decision you make is something that you are going to have to do. That will mean more than occasionally admitting that you are wrong. You and your portfolio will survive and you will be able to get back into the position again when trends signify that the time is right. You will have to learn to disregard any emotional ties you have to your stock and make quick stock trends for your master. You will miss the lowest entry points and the top-selling points, but you will be able to sleep at night. You will need to learn to get out of a stock position before your profits turn into losses.
13. A successful trader knows themselves. Successful traders must be attentive to their strengths and weaknesses. Your strengths and weakness will become very important. Play on your strengths when you can.
14. A successful trader knows their investments. Your investments are almost as important as you are. Know the past history of the stock and their strengths and weaknesses as well.
15. A successful trader sticks to the rules. The system is there for a reason. Nothing can ruin a successful stock buyer as quickly, or as certainly as flouting the rules.
Get to know these 15 characteristics and you are on your way to becoming a successful trader.