I will enumerate 3 points that help into the making of a successful trader!
1. They are calculated risk takers: successful traders are not afraid to take a calculated risk.
They are not reckless, but once they have a compelling thesis for a trade, and their trading plan doesn’t violate their risk and money management rules, they don’t hesitate to act.
They view their trading capital as funds earmarked to be risked, and possibly lost.
As long as they keep a trading journal and use it to analyze and understand their mistakes, these losses can be viewed as tuition in their ongoing training.
2. They combine enough self-discipline and self-confidence needed to work and make decisions independently, typically in solitude.
It’s been known that many professional traders come from fields requiring these traits.
For example, an unusually high proportion of traders appear to be writers, academics, or musicians of some kind.
It’s not a huge surprise, given that these pursuits all require a strong degree of the same discipline that’s needed to trade well, and are typically solitary activities, very much like trading.
Self-discipline is needed both to learn how to trade and for executing trading plans.
As for binary options, since those are generally held until expiration, traders don’t usually have to deal with the trade exit dilemmas faced in spot market trading.
They don’t deal with situations in which greed or fear tempt you to either take profits before likely resistance is hit, or to let losses run in hopes of a turnaround, even after your stop loss has been violated.
Still, a big part of binary option trading involves having the discipline to wait to enter until price is near support. Similarly, most pro traders are very comfortable being alone.
Ultimately, the traders make independent decisions.
Many successful traders tend to be the quietest, sitting by themselves, while the lesser ones were more prone to talking about their trades, either seeking advice, or simply reassurance.
Many traders may have been attracted to trading because it allowed them to work alone.
3. Successful traders are not afraid to admit being wrong.
Be it self-confidence, humility, or something else, they have a relatively easy time admitting they were incorrect, even when that means closing out a trade at a loss.
On the next post I will talk about how to deal and overcome disadvantages…
Until then happy trading!
How do successful traders operate?
Posted on by Rick Silva