Key Characteristics of a Winning Trader

By | April 5, 2021 3:33 pm

As both a trader and  Trading coach I had the Privilege to interact with lot of traders around the world and train lot of traders . I want to share something with you that My Trading Guru told me to repeat again and again famous Quote of Bruce Lee so that every cell of my Body is in Sync and becomes part of My strategy:

“Knowing is not enough, we must apply. Willing is not enough, we must do.”

Effective trading psychology is more than inspirational quotes from traders who are profitable. The actual internal emotional experience of each trader is unique and we cannot apply the same solution to all traders.

“The Trader’s Mindset”  is what a amateur  trader need to work on to move in category of professional trader. Any World Class Athlete you would have seen give much importance to the MINDSET before any big game. So its only your MIND you need to TRAIN to be a good trades.

Millions of strategies but a mindset to be a successful trader only few have and eventually those few traders succeed to make big. Many of my students during the trading course  ask me this question and we talk about it a lot with traders I mentor.

When we trade the markets we approach the markets each and every day with a psychological mindset or set of beliefs and emotions. New traders often enter trading with beliefs about trading and the markets that simply do not apply to the realities of trading. This is why new traders get into trades and can’t get out or don’t know when to take profits or get out at the bottom and get in at the top of markets. In other words they make bad trades because they are trading from inaccurate beliefs and become subject to their emotions of fear and greed.

Psychologically, the very best of traders share the same key characteristics, including the following:

  • They are all comfortable with taking risks. People with very low-risk tolerance, who cannot accept losing trades, are not cut out to be winning traders, since losing trades are simply part of the game of trading. Winning traders are able to emotionally accept the uncertainty that is inherent in trading. Trading is not like investing your money in a savings account with a guaranteed return.
  • They are capable of quickly adjusting to changing market conditions. They don’t fall in love with, and “marry”, their analysis of a market. If price action indicates that they need to change their view on probable future price movements, they do so without hesitating.
  • They are disciplined in their trading and can view the market objectively, regardless of how current market action is affecting their account balance.
  • They don’t give in to being excessively excited about winning trades or excessively despairing about losing trades. Winning traders control their emotions rather than letting their emotions control them.
  • They make the necessary effort and take the necessary steps to be self-disciplined traders who operate with strict money and risk management rules. Winning traders are not reckless gamblers. They carefully calculate potential risk against potential reward before entering any trade.

One of the most important psychological characteristics of winning traders is the ability to accept (1) risk and (2) the fact that you may well be wrong more often than you are right in initiating trades. Winning traders understand that trade management is actually a more important skill than market analysis. What determines profits and losses is often not so much a matter of how or when you enter a trade, but much more a matter of how you manage a trade once you’re in it.

If trading were a game like CRICKET perhaps novice traders would realize more readily that what appears as effortless ease of the professional trader in hitting 4 and 6 is in fact the product of endless hours spent training.

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