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Trading Success Secrets: Know
Thyself
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This past weekend, I spent several hours perusing some older trading
texts and noticed that there were several chapters that applied more
today than when they were written decades ago. Those were the chapters
dealing with the psychology of trading and the traits make one
successful. Successful trading hinges on your psychology and the
bottom line is that if you don’t know who you are, nobody else does
either. The chances of you becoming a successful trader are pretty
remote.
Trading is an occupation where you must be a realist. Dreamers need
not apply.
The list of traits that make up a successful trader isn’t very long
but it is complete. Think about the traders you know. Which ones are
successful? Which ones aren’t?
The traits that make up successful traders are:
- They are rugged individualists. I’m not talking about Grizzly
Adams here. What I’m talking about here the type of person who
stands on their own 2 feet. They don’t need a support group behind
them giving their self-esteem a boost.
- They are determined. Successful traders have a strong will.
Trading is a difficult business and has a lot of ups and downs.
People who lack the will to succeed won’t. You must stick it out
through the good and the inevitable bad times.
- They are loners. What I mean by this is that the successful
trader doesn’t ask for a lot, especially favors. Quiet contemplation
is a key to success. They have a job to do and they get it done. Not
a lot of fanfare – that type of stuff.
- Successful traders are avid readers (to a fault). They read
everything that they can get their hands on related to trading,
investing and current affairs. It doesn’t stop there – they also
read in a lot of unrelated fields as well.
- Successful traders are adept analysts. Not in the fundamental or
technical sense. They have the ability to step back and analyze
their actions. What’s going right and wrong? How can I improve? This
kind of thinking allows a trader to be pro-active instead of
re-active.
- In the same vein, successful traders are meticulous record
keepers. The keep daily trade sheets, daily journals and post trade
books. The ability to study past trades (both good and bad) can’t be
overstated.
- Successful traders aren’t bashful about asking others for their
opinions. Gathering information from other sources allows you see
the other side of the coin. Perspective matters. In the end, the
only opinion that matters is the one belonging to our trader. The
decision to make the trade (or not) rests with them and only them.
- When it comes to talking about trading, successful traders are
pretty tight lipped. If they talk about it at all, it’s to gain
insight into what went wrong and how to fix the problem. I like to
pick the brains of other traders. What’s working for them? Have they
ever encountered what I did wrong and if so, how did they fix it?
- The final trait that all successful traders have is that the
buck stops with them. They accept total responsibility for
everything that they do and they never make excuses.
In my lifetime, I’ve never met a natural born trader. I have met natural
born gamblers, but that’s a topic for another day. All of the traits
that a trader needs to be successful can be learned and acquired with a
little effort.In the end, successful trading is about knowing
yourself, pursuing the truth and expecting the best.
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