Knowledge about yourself, Your reaction when price goes in your favor, against you. Knowledge about your trading system and risk and money management.
You cannot trade without information. Information is required to evaluate any unforeseen influence entering in market. Knowing about results of company/Election results/Central Bankers meet.
With Confidence trader can take on challenge to trade market and make money, Whether a trade win or loss he should have confidence on his abilities to trade again. This is again dependent on personal disciple to carry our the trading plan.
4. Controlled Ego
A traders ego is his biggest enemy, If you have EGO problem, you always want to force your own will on market your days in market are numbered. A good trader is a good listener. The successful trader must be prepared to listen market and let it tell what it is doing.
NEVER ARGUE WITH MARKET ITS ALWAYS RIGHT.
5. Financial Security
The most successful trader are those who are forced to trade market for day to day bills. Trades who have enough capital have luxury to trade as per there will and when it suits them. Waiting for a trade is a skill most traders need to develop. If a trader can be patience and wait until all all requirements for a successful trader are met he will be assured of successes.
6. Few Important Points which should also be considered
- Never trade on Hunches.
- Never trade on Other people advise till you trust them.
- Always do your analysis before entering the trade.
- Take Responsibility of your trade.
- Be accountable.
- Never close a trade without a Good Reason to sell.
- Always be prepared for the UNEXPECTED.
All traders should keep this article on their trading desk. This would help a lot.