Successful Traders’ Personality Traits
Here are the ten personality traits that can help you win:
I’ve addressed in previous columns how knowing what to do and really doing it are two very different things. The most common error that most investors and traders make is failing to act when they know they should. There are hundreds of factors that contribute to a lack of discipline, and they must be addressed on a daily basis in order to succeed.
Regardless of the trading strategy or time frame is chosen, it is vital to acquire patience while waiting for conditions to emerge. Jesse Livermore famously stated, “It was never my thinking that brought in the large bucks for me. It was always my turn to sit.” However, patience can readily be abused as a justification for discipline and inaction. Even if you trade in really short time frames, you must be able to sit and wait for a trade to work properly.
Great trading and investing take work on a daily basis. You will be successful if you do the proper things on a daily basis for many years. It is vital to live with the agony of long-term bear markets since they are invariably followed by the grandeur of bull markets. Simply keep grinding away in a disciplined manner, and positive outcomes will follow.
You can’t trade scared if you want to make money. When the conditions are appropriate, you must be willing to be aggressive. You must trust that you are making the proper decision and be able to overcome the doubts and uncertainties that will inevitably occur. When conditions are favorable, a skilled trader has the confidence to place bets.
5. Be humble.
If you aren’t already humble, the market will eventually humble you. Great traders will have many failed deals and will make mistakes frequently. Rather than denying it, we must accept it and understand that we are at the mercy of the stock market gods. If we trade the market, we will learn humility daily, so we might as well embrace it rather than fighting it.
6. Positive Thinking
Positive thinkers make great traders. That does not imply that they are permanent bulls. It implies they are always hopeful of finding another fantastic chance. The nice thing about the stock market is that if you are patient and keep seeking, you will eventually come across another chance. Bear markets are simply laying the groundwork for the next round of profitable trades. Positive thinking is what keeps us motivated and ready to take action.
Every trade has two sides. Great traders understand that there is no such thing as a sure thing in the stock market. On the opposite side, there is usually someone highly smart with a lot of money, and we need to recognize their thinking while evaluating a trade.
It is critical to be conscious of your emotions while trading in order to trade properly. Do you feel scared? Are you avaricious? Are you impatient and fearful? You won’t be able to address these emotions if you can’t recognize them in yourself.
9. Curiosity and creativity.
Great traders are constantly on the lookout for new ideas and tactics. Markets are constantly evolving, and if you want to stay ahead, you must consider how the environment is changing and how new tactics may provide better outcomes. Great traders are constantly learning and are enthralled by what the market has to offer.
All of the features mentioned above must be balanced. We must be patient as well as aggressive, humble as well as confident, and positive as well as objective. Only when we have the correct balance of these traits will we be able to excel truly.
Trading and investing can be one of the most rewarding monetary activities in life, but it would not be as potentially lucrative if they were straightforward and easy. It is because it is difficult and requires so much of us that we can become wealthy if we do it correctly.