As a broker, we have the unique perspective to be able to communicate and see clients from all different experience levels. Throughout the years, we have had the chance to see many successful traders who have been consistently profitable over a long period of time. Here are most common traits we have seen amongst successful traders:
Being a profitable trader doesn’t come easy and certainly doesn’t happen overnight. Don’t be fooled by what anyone tells your or what you see online. All successful people, regardless of their profession become successful by putting in the time and dedication.
Successful traders are consistent and extremely disciplined. In order to have a long trading career, you can’t expect to make or break your account on a few trades. Profitable traders don’t need to be right all the time. In fact, they don’t even need to be right half the time. The common mistake we always see from new traders is cutting their profits short while being afraid to cut their losses.
This ties into being consistent. Successful traders create a set of trading rules and stick to them. They don’t let their emotions take over from their set strategy. Successful traders know where they are planning to get out, whether it’s a loss or profit, before they even enter their position.
Adapt to the market
While successful traders have a systematic approach, they also know when market conditions have changed and can adapt their strategies to these changes. Markets are always evolving. Strategies that were made for rangebound markets need to change when markets are trending. Trending strategies may need to change when markets become volatile and are filled with false breakouts.
A common mistake we see is new traders starting with too little capital. While the high leverage may be attractive to start with a lower account balance, keep in mind that leverage is a double edge sword. Make sure you have sufficient capital to fit your trading strategy.