1) Strategy
There are so many different strategies,Find one that fits your personality and do your best to master it. The fastest way to learn is to study success. In other words, find someone who is successful at the strategy you like, and then mimic them with your own style.
2) Confidence
If you don’t have confidence, you have very little chance of succeeding. This doesn’t just apply to trading, it applies to EVERYTHING in life (business, athletics, relationships, etc.). With regards to trading, you have to believe in what you are doing and not be afraid to make mistakes. The key is to learn from them, make adjustments, and constantly reevaluate your progress.
3) Love of Trading and a Competitive Will to Win.
The most successful traders love trading. They have developed a real passion for it. There is not much chance of being successful as a trader if you don’t have a strong desire and passion for trading. When I ask successful traders what is it that motivates them to continue to be a trader, rarely is it the money that is mentioned; more often it’s a love of the job, and various other aspects that go with that. .
4) Know Your Time Frame
You must find a time frame that fits your personality. If you are too nervous, maybe short-term trading isn’t for you. Everyone wants to make tons of money in the market really fast, but keep in mind that is not a healthy approach. Most people with this mindset tend to be “boom and bust” traders. They make a bunch of money and eventually blow up. If you are truly passionate about trading and hope to be in the game for a long time, I recommend focusing on a slow and steady approach.
5) Ability to cut losses
I’ve studied the best traders in history and they all have the same number one rule: CUT YOUR LOSSES! As a trader, think of your cash as your inventory. If you can’t cut losses quickly, eventually they get bigger and bigger, and you’ll have no inventory left to work with. I have strong conviction in my ideas but when the MARKET proves me wrong, I let go of my ego, cut my loss, and move on.