Are you wondering how to know if you are a good trader? OR can you become a great trader? There is an art to trading and figuring out if you are good at it or not is not easy. Even seasoned traders will have trouble with this question. It is easy to try and argue that the prophets speak for themselves, but the truth is there’s more to it than that.
To be a successful trader the right mindset is essential, says Norman Welz, author of the 2012 German book on trading psychology, “TradingPsychologie.” To be an effective trader, you must remain calm in the midst of market volatility, and develop strategies to protect yourself from the effects of emotion and psychology.
It is a commonly known fact that most traders lose money. Statistics show that 80% of traders are losing money while they are in the trade. Therefore, being a good trader is not a recipe for success. Many traders do not make it to the higher ranks because they lack some basic mental skills called the “Trading Brain” and the Winners Psychology.
Patience is a key virtue to successful trading. In today’s stock market, the impatient trader can be eaten alive. Impatience will lead to taking more risk than you need to and ultimately suffering higher losses than necessary for trading success. Impatient traders would not wait for their best setups to form and would trade more than required and would earn less than he would have earned with patience.
Discipline is the key to trading successfully. If you can keep a cool head and ignore the noise of the market, you will be able to see value or risks that others will not. The crucial skill to learn if you want to make money in the stock market is discipline.
Positive attitude is something that many people have difficulty in preserving. However, for traders, this is probably the single most important attitude to have because trading is always about taking risks. Positive attitude can do wonders towards helping you get over the difficulties and setbacks in your search for profits.
There are hundreds of ways to define a “good” trader; so many, in fact, that you could probably come up with your own definition. However, one trait that commonly impresses itself upon us all is adaptability. As we know, the markets are not stagnant but by their very nature are ever changing. Once the trend has changed and if you are not the person who can adapt with the changing trend of prices, you will be thrown out of the market very soon.
The people who make good traders are the people that love themselves. This is because they are excited enough about their trading to make a career out of it, and not just a quick windfall. You have to do what you do because you love doing it.
Everyone wants to be a good trader, but not everyone can be a good trader. A Good Trader is always a Leader, a good trader never follows others. If you are not a leader believe me you will just fall prey to traps in the market that occur to catch the groups of herd mentality.
To be a good trader, the first thing you have to have is mental toughness. What is mental toughness? Well it is just having the ability to stay in a trade. To be able to overcome the times when things are not going well and make the right decisions because you ‘think’ they are right.
You must be able to accept your mistakes and failures if you want to improve and become a great trader. Accept your mistakes, accept your failures, and accept your loss.
One of the biggest problems is egoism and being humble on the other hand leads to success.In trading we often get lost in our ways, and lose sight of what really matters. The key to success is humility. It prevents us from being egotistical. You cannot say the market is wrong, prices are going wrong, you have to accept the market and prices as they are. In short you cannot afford to fight with the Mr. market, ego will penalize you badly here.
In the world of trading and investment, the typical advice would always be to be persistent. It is in fact the most basic principle that is taught to every investor or trader in the world. It takes a very huge deal of patience to be a good trader; there is no way around it.
If you think you lack few or many of the qualities then also don’t worry. To develop a training brain we have many solutions to work upon. One good exercise is to read the Trading Mind affirmations religiouslyYou can read one of our articles “Trading Affirmations: Make money in Mind before you make it on terminal” to know more about trading affirmations. If you want to be a great trader, you need to recognize the role of emotion and psychology and actively manage or mitigate those effects.Multibaggers.co.in is a leading advisory providing Successful trader course. This course is important for all traders to know the various tools used by the successful traders and their strategy. The course aims at removing the unnecessary hesitations of newbie traders, preventing them from making successful entry in the market. The participants will be getting complete stock market course training regarding stock market theories, strategies, and applications. In one line, a successful trader course includes Technical Analysis, Money Management and Psychology.