Everybody who is in the world of trading wants to be successful. Is it easy to achieve? Yes, and No! Did you know, becoming successful in trading is equivalent to being successful in life. Everyone can achieve success in life. However, its hard work. You need to have some good traits and follow some rules in life. In fact, I would say to become successful in anything you thrive for, you need to have some groundwork to be done in your life. And all the points which I am going to mention are very simple. Question is, are you willing to do it? If you do, then give yourself a couple of months or so, and observe how your life changes.
Here are those traits that you would have definitely heard!
Now let’s be honest here, Self-discipline is not a trait we are born with! It’s not a talent exclusive for few people. Anyone can achieve self-discipline. We need to inculcate it in life by doing the things over and over again. It can become boring!
When you start trading you might be fascinated, but there are good chances that you will suffer many losses. At this particular time, you might even feel discouraged to trade further.
This is where self-discipline comes into the picture. An important trait for any trader whose goal is to become consistently profitable. Now I am not saying you sit in front of a computer, take a trade and hope for the best! You need to have a goal in mind! This will be your first step towards developing self-discipline, as it will give you the motivation to get through trading each day.
Another way to practice self-discipline is to keep a trade journal. You have a winning trade, great! Write it down. You had a losing trade, still write it down and mention where you went wrong. Trading journal is going to help you right your wrong. And later, when you’re set, you will take a trade only when you have a setup. You will not feel comfortable taking any other trade even when it’s tempting and giving you a huge reward. Because you know, eventually it’s going to disappoint you.
“Acquire the ability to accept or tolerate delay, problems, or suffering in trading without becoming annoyed or anxious”
Have you forced yourself to find a setup and executed a trade only because you just couldn’t sit idle?
All these actions lead to losing money. WHY? Because you lack Patience.
Anger, stress, frustration is enough to ruin a trader’s portfolio. To master any art or to enhance your talent, especially trading, you need to make continuous effort for a long time. To achieve your dream of becoming a consistent profitable trader, you must have the zeal to overcome challenges and the power to overcome all this challenge is by having patience.
Whenever we see a trading setup we need to follow the same plan of action every time. Once we have done our back testing and forward testing on a particular strategy we feel more confident. Now, our job as a trader is to execute the system exactly as is designed and tested by us.
We need to repeat the process every time we find our setup. To be able to consistently follow the system every time, one trade after the other, be it a winning trade or losing trade, will advance us in our trading and can expect consistent results. Remember, Consistent ANALYSIS + consistent EXECUTION = consistent RESULTS!
Let’s get into the dictionary meaning of Confidence. “the feeling or belief that one can have faith in or rely on something.” When it comes to trading you are relying on a trading strategy. Getting into trading is not a child’s play. Trading involves immeasurable risk if done in a confused state.
Understanding the risk and getting involved in a trade requires confidence. The only way you will feel confident about your system is by knowing your system is profitable. Now this can be achieved only when you have information whether your system is tested, verified and can be repeated over and over again.
On the contrary, being very confident of a system and expecting best results, which is commonly known as overconfidence, is even more dangerous, as it makes you to trade with heavy volume and keep averaging in losses and ultimately lose all the money. So this has to be balanced! And moreover, you need to believe in yourself that you can be a profitable trader. Having the confidence to trade with proper risk management will lead you to success. Believe in yourself. Believe in your skills. And most importantly, believe in your ability to succeed.
I am quite sure everyone would agree when I say, in order to be successful in life, you need to have a goal in mind. Let it be business, your academics, or take any skills, you need to have a vision where you want to reach.
Same thing goes for trading. You need to have a vision or a goal. How much money you want to make in how much time period with realistic approach. Doesn’t matter even if it’s a small goal, meaning, a small percentage of return in a quarter. And when you feel you can achieve that consistently, increase your percentage. Without a goal, is like a ship in the ocean without a destination. The ship could go anywhere but where would it go? Pretty sure none of us will know. However, in order to reach this stage, you have to have all the traits which is mentioned above.
If making money consistently is you goal, then work on that. If making a certain percentage every month, if that’s your goal, then work on that. You need to do a lot of hard work in order to achieve your dream. But, if you do not know exactly what you want from the markets, the market will give you what you do not want. Dream big. Make your life big. Have specific goals in life or in trading.