Here is a list of qualities shared by all professional Traders that you should have if you want to make a livelihood at trading. Consider that the top one percent of players take home 99 percent of the money. That means the 99% of people who call themselves “traders” are giving their money to the 1% of traders who are making money.

Almost every trading book will provide you with a checklist of common success attributes like discipline, focus, passion, commitment, determination, and confidence that, if used correctly, may serve as a framework for achieving success in any endeavor.

After analyzing hundreds of the world’s best traders, many of whom are profiled in Jack D. Schwager’s books Market Wizards and New Market Wizards, we identified these 12 characteristics shared by the most successful traders.

Gaining these characteristics of successful traders is essential to make it in the industry.

The all-or-nothing nature of the discipline

You consider yourself self-disciplined, huh? You can’t call yourself disciplined unless you practice it consistently. This skill must be used every time a trade is made. You can’t be considered disciplined if you break your rules even once.

There will be moments as a market participant when you feel it’s appropriate to act on your intuition rather than your carefully set out plan because “this time is different” and “I will only do it once.” However, this rarely works out the way you hope it will. Traders’ accounts are blown up by the idea of “Cut me a break, and I’ll never do it again.” You really must survive another trading day.

Discipline pays off in the market.

Discarding the correct path

You will incur losses; every trader does; what differentiates the highly successful from the perpetually losing trader is how they handle their losses. The following three guidelines are inarguable for attaining trading success.

First, always utilize brakes

If you’re a trader and you’re not using stops, you might as well try rowing across the Atlantic. You might have a goal in mind, but when the storm hits, you’ll probably end up drowning.

Do not try to make a winner become a loser.

After a transaction goes in your favor and reaches a certain threshold, you must move your stop-loss order to the break-even point. You can control your risk by limiting the total number of complete stop outs.

Never accept a significant loss.

Following the first two guidelines will inevitably lead to the third. A significant loss is the only one that matters, as it can completely wipe away your gains for several days, weeks, or even months. Never put more than 1.5% of your trading capital at risk on any single deal.

Profits will accrue if you adhere to these three loss-control guidelines. Disobey them; you might as well swim with a gaping wound in waters full of sharks.

Invest in your education.

You need to be able to change and adapt as quickly as the markets do. You should learn everything you can about a market’s structure and dynamics before you start trading there. The futures markets are home to some of the best traders in the world. What gives you the confidence to compete with traders who have been in the game for years and have seen all the market swings firsthand?

If you commit to lifelong learning, you’ll be able to take advantage of the many doors that open up as the market changes. However, you can’t skip the basics; familiarize yourself with the market.

Learn who you indeed are at your core.

Trading is the best activity to help you learn about who you are. The markets will force you out of your comfort zone and reveal your weaknesses. You will waste a lot of time and energy fighting an uphill battle if you try to trade against your natural tendencies.

Highly successful traders know themselves better than anybody else in their field. Trading tests your mental fortitude as you experience the highs and lows of winning and losing. Like the lack of cover in golf, traders are ultimately responsible for their acts.

Be sincere with yourself when you develop your trading strategy.

Do your thinking.

Independent thought is necessary for success in trading, but it is also one of the most challenging skills to master. Don’t give in to pressure or let people sway your opinions. Stop listening to CNBC’s pundits and think for yourself.

Success will come your way proportionally to how diligently you keep your records, think for yourself, and draw conclusions. Whether the market is bullish or bearish is of little interest to the average guy. He wants to know whether buying or selling a particular stock is better. He insists on getting perks without paying for them. He flat-out refuses to work. He despises the very idea of having to use his brain. Livermore, Jesse

Do your research because nobody can know where the market is headed.

Strategical precision

While it’s true that most strategies ultimately fail, your chances of success in trading are significantly higher if you have a plan in place. If you want to succeed as a trader, ask yourself the following questions and keep refining your answers until you have a solid foundation to build.

I want to know why I want to become a trader.
How will the rest of my life be affected if I don’t devote my all to becoming a trader right now?
How much money do I have right now?
How much money do I need to maintain my current standard of living (myself, my spouse, and our two children)?
Do I frequently buy things on the spur of the moment?

To succeed as a trader or in any other field, you must do an honest and thorough self-analysis. Read Napoleon Hill’s Think and Grow Rich as often as you like since its lessons can help you succeed in trading and life.

Take a Stand

The most detrimental trait of a novice trader is doubt. Causes of reluctance may include…

Having little faith in your trading strategy; Trading above your means; and, most typically, inexperience.

Experience is the only thing that can give you the confidence to act decisively. A trader’s confidence level in making a deal increases the more time they spend trading the markets and analyzing charts.

To paraphrase Benjamin Graham: “When you hesitate, you let the market build up steam; without a defined entry, defined stop, and defined profit target, you will find yourself in the lost world of chasing trade after trade, inherently watching great setups pass you by, and finally entering as the professionals” (the highly successful 1%) are taking profits.

Malcolm Gladwell writes on the importance of putting in 10,000 hours to become an expert in his book Outliers. When the markets are closed or less active, you can utilize that time to study trade setups and hone your competitive edge, bringing you that much closer to your goal of 10,000 trading hours.

Have the resolve to achieve whatever it requires

That trading is simple is an untruth. The fruits of one’s labor are life’s most significant rewards. All successful people share this quality, but when it comes to trading, it’s most prevalent among those who began with little to no trading capital, didn’t go to an elite university, and succeeded despite the naysayers.

You need the kind of dedication that will make you do everything it takes to become a highly successful trader. Without this enthusiasm, the trip would be pointless.
Gain self-assurance gradually:

Trade to trade well, and the money will follow. * Look for the silver lining in every cloud. * Reward yourself for sticking to your rules, whether the trade is a winner or a loser. * Don’t abandon your strategy after every unsuccessful trade.

Decide to do everything it takes to succeed; good chances will come your way.

The Fruits of Patience

Cut your losses short and your gains long. Extremely profitable traders never lose their cool. We need loss-limiting stops when a trade is against us, but it’s just as critical to have profit-maximizing take-profit levels when things are going well.

Knowing your stop loss and profit target beforehand is essential for successful trade exit planning. By setting these boundaries in advance, you may avoid making rash trades based on gut reactions when the market approaches your price. Your trading will tank if you act on impulse.

Scaling out profitable transactions is one way to maximize returns. When a trade is in your favor, having numerous targets allows the deal to continue working to your advantage even after a loss has been fully removed at your predetermined stop point.

One approach to maximize profits from profitable trades is to exit 1/2 the position at the first target, 1/2 of the remaining work at the second target, and 1/4 of the original post at the third and final objective. Making the most of a profitable trade is possible with the help of trailing stops.

Stay Humble

The marketplace is the best place to learn humility. You will succeed if you treat others with humility and respect. Most traders will live and die by the emotional forces of fear and greed. Highly successful traders know that the market is always correct, regardless of their opinions.

It’s better to give than to get, as Karma works both ways.

Be truthful and maintain complete records.

One frequently forgotten issue is the significance of a reliable transaction reporting system. If you keep track of your trades, you can later use that information to find patterns across other trading environments. Keeping track of market data is another useful practice for later use in identifying patterns from which good trading techniques can be derived.

Microsoft Excel is one of several helpful tools for examining your trading data. Things you might wish to keep track of and analyze include…

You should record the following information about your trades: * Win/Loss percentage * Number of transactions * Average risk/reward * Winning percentage * Time of business * How you felt before, during, and after the trade.

There is no such thing as having too much data; therefore, if in doubt, write it down. If you keep a trading journal of your feelings, trades, and market observations as they occur, you’ll have a valuable resource to draw in the future.

On the other hand, why are you doing this?

Making a profit is, of course, the ultimate goal of any trader. But it would be best to consider whether the sacrifices you’re making are worthwhile. Some traders lose everything when their lost deals spiral out of control, including their homes, families, and health. Maintaining a healthy equilibrium is crucial to achieving your goals while still feeling satisfied with your life.

Being a business owner comes with a lot of pressure. Stress and strain from having to provide for one’s loved ones might erode our appreciation for life’s simple pleasures. A few easy steps toward a more balanced existence include…

Always prioritize your loved ones over work.
You should: * Plan your meals * Get at least 60 minutes of exercise per day * Get plenty of sleep * Take frequent walks in natural settings * Break down your daily duties into manageable chunks.
* Shoot for the stars, but tie your aspirations to a firm deadline.

We are given the independence to direct our lives in exchange for our labor. You should make a living from trading rather than trading to support your lifestyle.

If you want to make trading your career, developing these skills can help you get there faster. To persevere through the inevitable difficult times, it’s essential to start with a comprehensive strategy and a clear explanation of why you want to become a trader.

What goes around comes back, according to Karma and the rule of reciprocity. You can’t expect to become a successful trader by taking any shortcuts. Take charge of your life and decide right now to do everything you can to achieve your goals.

Racette, Tim

Futures trader, entrepreneur, and Arizona State University alum who also competes in mountain biking.

Read also: https://cnnislands.com/trading/