Use it as a checklist for your own trading/investing preparation & implementation.
These traits are very important for you to understand - and we suggest you try to adhere to them in order to truly become a successful trader. These traits coupled with the proper psychology can make a difference in your overall trading/investing performance.
- The ability to act on your decisions.
- The ability to accept responsibility for your actions.
- You must have emotional detachment from the markets.
- The ability to accept risk and take losses (you'll never be right 100% of the time).
- The ability for independent & creative thinking.
- The ability to develop insight & proper course of action in various market situations.
- The ability to have self-control.
- The ability to adapt quickly to changing market conditions - being flexible.
- Accept your inability to control the market's movements (the market is always right).
- The ability to function in both structured & unstructured environments (up, down & sideways markets)
- You must have a commitment & focus on the task at hand.
- You MUST effectively manage your stress in order to strive & survive in this business.
Other critical traits:
- Self-Discipline
- Knowledge
- Decisiveness
- Positive Mental Attitude
- Consistency
- Self-Control
- Concentration
- Persistence
- Patience
All these traits have to do with your psychological make-up. You must overcome any and all psychological pitfalls if you want to achieve both profits and attain longevity in the markets. It is the psychology of traders that moves the markets and that's why your thoughts and feelings are important. Remember, whether you're a day trader or long-term trader, your thinking and emotions will affect your trading.
- Your thoughts control how you feel, thus feeling "Positive" gives you a greater chance in being successful in the markets. Here's a quote that conveys this statement:
"When you are feeling gloomy, everything seems to go wrong; when
you're feeling cheerful, everything seems right."
- Remember, you are totally responsible for your actions 100% of the time. Never blame anybody else. This is very important in trading/investing. Here's another quote:
"A fool is quick tempered; the wise man stays cool in the face of insult
or adversity."
© Copyright 2008 by Trading Concepts, Inc.
