Secrets of Highly Profitable Traders Part-1

By | April 13, 2016 6:23 pm

Highly profitable traders are not born, they are made. They do not rely on pure luck to make consistent earnings but on their calculated moves when trading in stocks/Forex/commodities.

Today lets discuss the Qualities of Top trader.

1. Discipline

Without discipline, none of the other qualities matter. It is possible for any trader to invest some money in a  account, enter their very first trade and make a high profit and repeat the process and make profits for a short duration of time.The story of most of retail trader, but what differentiate professional from retail trade is:

However, it is only a disciplined trader who will be able to consistently make profits over a long period of time.A trader who lacks discipline will most likely wipe out his/her  trading account in a very short time period.

2. Perseverance

We all at one point in life fail in our endeavors. When that happens, most of us give up but the best of us preserver and try again and again until they perfect their approach and succeed.The best traders in the market did not get to the top easily by winning every trade.Almost all of them lost big at one point, or even several times. But they fought on, learned more, and came back better.

3. Professional

Top traders are highly professional to their approach to trading. They do not treat the  market as a gambling table or a hobby, but as a serious business.They use proper risk management and money management techniques while at the same time recording all their transactions.They use a carefully formulated trading strategy on each of their trades instead of simply going with gut feelings.

4. Unemotional

While all of us as human beings have emotions, top traders have over time trained themselves to approach their trading devoid of the emotions that jeopardize our trades.Emotions such as fear, greed, pride, and hope only end up sabotaging our clearly formulated  trading strategies and make traders discard their market analysis results leading to losses.

5. Goal Setter

It is said that every journey begins with the first step. However, if you do not have a direction to follow and a destination to move towards, your steps may just take you in circles around the same spot.Top notch  traders identify their preferred destination by setting goals. These goals include short term goals that may span anywhere between a few minutes to a few weeks.They also have middle term goals which may span a duration of between a few weeks to even a few years. A goal setting trader will also have long term goals that will typically be set to be accomplished within some years.

10 thoughts on “Secrets of Highly Profitable Traders Part-1

  1. Nat El

    Naveenji, Each day, go for only 1 trade keeping your profit at 0.5 to 0.7%. Close the trading platform for the day after profit trade; repeat this for about 2-4 weeks. If u can do this, then it will mean that u now have a good control over greed, and more so over itchy fingers.

    Do not look at profit as how many rupees, but only at percentage

  2. Karthik Sadasivam

    Good one….i am doing this mistakes even now…not keeping stop losses…i need to improve…..:(

  3. Naveen

    Sir,these are simple terms but have a deep meaning to understand.
    Can you further explain means of discipline in share market??
    Its my first month in share market,first week i am in profit ..this last week ,i lost all my capital.

    1. Vijay

      Welcome Aboard! You still have to travel a lot before you ever see profits coming your way. Here people have lost for years and yet to get a grip on the elusive charm of tempting profits/money that floats on the proverbial Stock Markets forever. Boy! be careful!

    2. JMG

      Follow the levels mentioned in this blog with a strict stop loss, hope this can end up in profit at the end of a month.

    3. Nat El

      Have you analysed where u lost yr capital? And hv u learned anything from those losing trades. THIS IS 1ST DISCIPLINE. Do not transgress those trading mantras u have devised, e.g. stochastic chart was not in ABSOLUTE favour of trade, u still jumped into the trade Just because the price candles kept on going up, and u jumped in at the highest point, candle movement reversed and you lost. THIS 2ND DISCIPLINE…. – FOLLOW very strictly your rules before entering a trade, keep emotions at the doorstep. More could be written, but you have to learn. Do not give up if u are convinced that stock trading can definitely be profitabel

      1. Mahesh Prasad Sharma

        Dear sir, Good explanation of DISCIPLINE. Kindly let us know about how to find a trend. Thanks
        M P Sharma

        1. Nat El

          Dear Sharmaji and Navinji,
          You get a heck lot of learning matter for stock market trading on google. Follow “CandlestickForum” for one. Good lessons and advises. To start with, Brahmeshji’s archives will help you a lot to find basic lessons. Search through his blog archives. One of them is “How To Identify Market Tops and Bottom” . No matter what you learn from various sources you have to form your own rules and regulations for trading. Trial and error matures you to become a good trader. Still you will allow your emotions to get better of you and lose again! That’s why 2% make money and 98% lose – stock matter is a great leveller- NO MATTER HOW HIGHLY EDUCATED YOU MAY BE, UNLESS YOU CAN MAKE JUDGEMENTS KEEPING EMOTIONS ASIDE, YOU WILL ALWAYS BE A LOSER.

          i have not written this to discourage but this will filter our ones with guts and strong mind from weaker players. Good luck to all..

      2. Naveen

        Nat E1 sir ,i am learning from my mistakes and follow Bramesh sir blogs…
        I execute early when profitable but in loss,i keep on to regain again and it makes me in loss always.
        Can you suggest some useful books?
        What About book “options trading 101” by bill johnson edition 2007?


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