Many aspiring traders just touch the surface when it comes to the habits of the successful traders of the world. They often wonder how to be successful traders. But don’t go to the depths and thus can’t identify the top habits that made them highly successful. These are not just habits, they are the secrets of their achievements and accomplishments. So, do you want to reach that level of success? Then you should do what successful traders do and you will surely achieve what they have.
- Habits are repeated behaviours.
- That’s what you do repeatedly that brings the most impacting results in your life.
- Embrace the best habits to get the best results
When we study highly successful “Market Wizards,” it becomes evident that those people are just like us. Most of them were not born into success. They had to struggle and face hardships. They had to develop some habits to be successful. They courageously faced trials and tribulations and realized their dreams. Let me quote one example here. Marty Schwartz, a highly successful trader, took 10 years to be a successful trader. That gives the feeling that these people aren’t super-humans or with some supernatural powers. They are just like me and you. So, what they have achieved is certainly outside the norm but not outside the reach. Nothing is impossible unless and until you are determined to do what they do. So, what are those game-changing habits of the best traders?
The following is a list of the most common habits of the best traders around the world. Strongly hold these habits with the belief that those habits are going to put you on the road to success.
1. Set realistic goals
Setting goals in your life is as important for life as breathing. If you don’t know about your destination, you cannot find the right path. According to Lawrence Peter, “If you don’t know where you are going, you will probably end up somewhere else.” That is the importance of goals but your goals should be realistic. A goal-driven trading approach will keep you motivated and make you analyze your performance on regular basis. Don’t limit your goals to making money only. You should set goals to learn something new about trading and financial markets. Keeping your knowledge fresh and updated will bring money as a by-product. This is the best formula to be a successful trader.
2. Build a sound trading strategy and have total faith in it
All the successful traders work hard to build a sound trading strategy. Once they have one, they have total faith and belief in it. They never hesitate or falter to follow it. You should also build a sound trading strategy for yourself that works well. When you have one, just strictly follow it. Of course, you can improvise it along the way but keep yourself on track.
3. Track their performance
Tracking performance is one of the most important daily habits of successful traders. They claim to closely analyze their performance at the end of each trading session. That is what you should also consider. Keeping a journal is the best way to track your performance. It will help you gain from your previous trades. You can analyze why some of the trades weren’t successful and why others were successful. Tracking performance is also the best source of learning for you. You can learn from your mistakes and capitalize on your success.
4. Face their failures and accept their mistakes
You can never know how to be a successful trader if you don’t adopt this habit of the successful traders. All the successful traders face their failures with courage and accept their mistakes. They follow the rule that you can wrong often and right rarely but still be profitable. They don’t get mad or discouraged and overcommit. They know that tomorrow is another day. They just follow their strategy and believe that successful trade is coming soon.
5. Conduct technical or fundamental analysis to make informed decisions
All successful traders have a habit of making informed decisions. They analyze the company’s situation through technical or fundamental analysis. Successful traders always make the best use of analysis techniques. That is why they mostly end up on the winning side. That doesn’t necessarily mean that they never lose. It is just the knowledge and skills that often lead them to profitability.
6. Strictly manage risks
Trading involves risks and all successful traders know how to manage risks. They develop this habit to remain in the trading for a long time and capitalize on successful trades. Successful traders always make sure to keep risk exposure at acceptable levels. They never rely on random parameters to enter trades. So, if you want to know how to be successful, manage your risks carefully. The key is to control your position’s size and risk/reward.
7. Control their emotions
Successful traders are human beings after all. They also have emotions but they don’t let their emotions overwhelm them. This a habit of successful traders. They don’t let themselves over-confident at the end of a big winning day. They know that overconfidence can bring big failures as no one can claim to be indestructible. They don’t let themselves be discouraged either at the end of a losing day. Thus, they keep tight control over their emotions. That is how they keep emotions balanced and consistent.
You may be surprised to know that all the successful traders aren’t introverts. They might be keeping themselves in a dark room during the trading hours. But, they always tend to socialize and make connections. It is an important habit of the best traders because it helps you to freshen yourself up and also boost your career. You might find an opportunity to diversify your portfolio, get inspired, or even get new trading ideas. So, socialization is a good idea for your mood, health, and career. Develop this habit and let it help you directly and indirectly.
9. Work really hard
Success always demands persistence and hard work. You cannot accomplish anything without putting in some effort. If you sit idle and rely on hopes, you will get nada. Hard work, persistence, and consistency are the key habits of the best traders. They have worked really hard to make their strategies and improve them along the way. Successful traders know that success does not accept shortcuts. They also know that placing a single or a few winning trades isn’t a success. The real success is being a consistent winner and that takes time and a lot of practice. So, if you want to accomplish big things in trading, develop the habit of hard work and let it show its magic.
10. Have patience
Patience is one of the most important habits of successful traders. Patience not only grants you success but also helps you have a new perspective on life. Have patience and do not get obsessed with your future. Instead, focus on the present and what is happening at the very moment. Stop thinking about making millions and billions. Focus on the important things you have to do now to reach that level. When you have patience, future thoughts cannot distract you. You only focus on the present and do your best with full attention and dedication.
Trading isn’t an exception here. If you do not trade with patience, you lose most of the time. You can follow your trading plan, strategy, and technique only when you have patience. That is what most successful traders did and are still doing. They don’t make hasty decisions but remain calm and patient. So, how to be a successful trader? Our suggestion is, start with being patient.
11. Maintaining the best habits
Another habit of the best traders we find is they always maintain their best habits. They know that trading rewards those who are consistent with their routine. It is quite normal that you may get lazy after a few winning days but successful traders don’t. They never let their good habits go and you need to do it if you want to follow in their footsteps. In simple words, developing and maintaining all the good habits of the best traders well worth your time and efforts. This practice is definitely going to contribute greatly to your success as a trader.