10 Habits of Successful Traders
Are the numbers in your trading account lower than you’d like them to be? Don’t worry too much if you are struggling in the beginning; everybody does, some for longer than others. If you want to accelerate your progress toward success, though, you can start mimicking the behaviors of successful traders now. A lot of that has to do with how you conduct yourself as a trader, and not necessarily your market expertise. You can control your own behavior, even if you cannot control the market. So acting like a successful trader can be a great first step to becoming one. Here are 10 habits you should get into if you want to trade like the pros.
1. Keep a journal.
You should always keep track of your successes and your failures. The most successful traders keep very detailed logs which not only say whether they won or lost their trades, but also what was going on at the time and what circumstances may have caused the win or loss. They look back frequently at their journals and see if they can find patterns that will help them turn more losses into wins in the future.
2. Use tools like rollover and early closure.
Do you ignore the useful tools your broker provides you? If so, you are an average trader. But here is some news for you: average traders are not winners. They end up losing, sooner or later (most of them sooner). The most successful traders are the ones who strive for control wherever they can get it, even if that involves more time and effort. Rollover and early closure allow you to choose when you exit your trade. When you exit can be every bit as important as when you enter for successful results.
Look for other useful tools as well which can help you to control your trades from the outset. Do you see something called “Option Builder” on your platform? You can specify your own expiry time in advance using this type of trade. That is an optimal way to approach your trading. Your broker also may provide you with economic calendars, video tutorials, and other helpful resources.
3. Keep a balanced schedule and lifestyle.
There are three common mistakes traders make when they work on their trading schedules. They may not trade enough, making trading their last priority, which means they will never get anywhere. Or they may trade all the time, forsaking other priorities and obligations like eating and sleeping, socializing, or doing their day jobs. This will also lead to disaster. A third mistake is not having a schedule at all, and trading randomly or erratically. Successful traders have organized schedules which allow them to maintain a healthy and balanced lifestyle.
4. Test your trading methods.
Before going live, you should always backtest and then demo test your trading methods. Anytime you make a change to a method, you should test it first, and then trade it with real money only after you have proven to yourself that it works. Doing this can save you a ton of money, and keep you in the game. You do not have to leave the business of trading entirely up to chance.
5. Treat trading like a business.
That leads me to another trait of winning traders, and that is treating trading like a business and not a hobby or a game. There is nothing wrong with trading for fun, but winners are those who trade like it is a business, complete with business plans, daily routines, schedules, and obligations. Self-discipline and seriousness will get you much farther in the long run than a single lucky trade every will, no matter how big that winner is. Make trading a business, and you will do well. Click here for 4 Ideas for Developing Discipline
6. Be honest with yourself and others.
Accountability is a very important habit to have. If you are in the habit of deceiving yourself about trading or anything else in your life, it is time to get honest. Even self-deceit in areas unrelated to trading can eventually start transferring to your trading, and then you will have a major problem. Successful traders admit their mistakes. They cultivate a sense of humility without losing their self-esteem. In this way, they are able to see the problems they need to fix and correct them.
7. Adapt to change.
When life throws you a curve ball, what is your typical reaction? For a lot of us, panic is the result. As a trader, you are going to be catching a lot of curve balls, and that requires you to be fast and adaptable. You have to expect the unexpected. And when it comes, you need to be willing to do what it takes to move forward, even if that means testing changes to your trading method or changing something about your personal approach to trading.
8. Never stop learning.
Great traders know that the markets are constantly adjusting and transforming, and that nothing ever stays the same forever. Because of this, they never rest on their laurels. They constantly are reading up on trading, testing out new techniques, and improving their game. This is one of the single best traits you can cultivate as you become successful. It is what will keep you there. Check out the Price Action Technique
9. Communicate with other traders.
Another important habit to build is communication. If you typically isolate yourself in your trading, you are cutting off access to some of the best trading resources out there: other people. Of course, a lot of traders probably are not much smarter than you (or may be nowhere near as smart as you), but you will find plenty of other people on a level with you who can share what they know. How do you recognize these traders? You will notice they have some or all of these good trading habits that I am discussing. You will find them honest and dedicated. Join a community today!
10. Be generous.
This may sound intangible, even counterintuitive, but generosity can help you to build wealth. How? When you trade binary options and start meeting others in the trading community, you will quickly realize how many traders are willing to help each other out. The only reason there are people out there willing to share their methods and stories with you is because they are generous. And that is why you should be the same. What goes around comes back stronger, as the saying goes. When you share what you know, you will be contributing positively to a community which can support your trading and contribute to your success. You will also probably feel pretty good about it too.
All of these different patterns of behavior, whether intangible or otherwise, may be difficult to develop at first. But eventually they will become second nature to you as you practice them. That is why they are good habits. Sometimes new traders make the mistake of believing that some people are born as honest, disciplined workers and others are not. But that is rarely the case. Almost everybody has to build up these character traits from relatively weak foundations. Others have done it, and are now trading successfully, and you can too.
But what about all the technical aspects of trading successfully? That is the beauty of developing good habits. When you become dedicated and start treating trading like a business, the rest will eventually follow if you stay determined and focused. Your honestly and discipline will lead you away from trading mistakes and help you to unearth the secrets of success.
Click here to learn about binary options mistakes to avoid.