You cannot differentiate who is the better trader by just observing a trader’s strategy or by how good is their analyzing power, rather than, by finding out who has the most winning mindset for making a career from trading. Research shows that few things make a winning trader different than a losing trader.
- Having a better trading strategy is not always give you a positive result.
- Traders who are smarter than others do not always help you to make good profit from trading.
- Winning traders do not always do better market analysis than other traders.
It is the psychological mindset for trading which makes winning traders deferent than losing traders.
Most of the trader considers making a good strategy before joining the trading market and they think that they are going to apply that strategy from the first trade. As they join the trading market daily and apply that strategy and think that their account will start growing in no time. But unfortunately, many of them start to lose money often no matter how good their strategy is and how well they follow it.
You will find many traders who are constantly winning money and if you get to know them then you will find out that the main reason behind they winning is having a good mindset for trading and they know what they want to have from this market. You may find out their strategy is not that much good but still, they are winning. So now you can understand that having a good mindset, attitude and psychological power is also as important as having a good strategy if you want to make the most from this market.
Key characteristics of a winning trader
A trader should have a few key characteristics which will help him to become a winning trader and now we are going to talk about those:
- Be comfortable will taking a risk: People who cannot accept losing positively, always try to keep his risk level very low will never able to make anything from this trading world rather than he may lose his capitals. A winning trader must need to very strong mindset and should know that losing is a part of this world and should not be emotional when he faces a few losses. You cannot consider your trading account as a saving account from where you may get some result now and then and if you don’t want to take the risk then the trading world is not or you. You should leave trading soon if you think that you will get a guaranteed return from your trading account or you will hurt yourself for sure.
- Adaptability: The trading market is so volatile that it looks deferent in every minute so a trader just doesn’t have to open a position whenever he just finds one. Rather than they need to analyze more to listen to what the market is trying to say before making any moves. So traders need to be adapt to all kinds of situations if he wants to make something from this market. Analyze the data like the top investors at Saxo Bank. Soon you will learn to take the trades like elite investors in Australia.
- Being disciplined: A trader must have to be disciplined no matter how bad their trading day is going. They should always see their mistakes as a chance to learn and should become emotional so that they take more risks to recover they are lost. No matter how worse the situation becomes, traders should always stick to their plan and mindset and follow their rules of trading.
- Risk management: Suppose there is a trader who is master of a break out trading and he might find all the positions where break out occurs and there is another trader who can sometimes find break out positions. So once they both find out a breakout and open position from the same place and after some time the trader who was not professional in break out trading was happy because his take profit level is touched and he got his profit. On the other hand, the professional break out trader was in a tensed mood because he did not use any take profit level and keep his trade open, and as a result market was going against him after rising to a certain level. So this happened because he did not follow any risk management rule though he is professional in break out trading. So always follow a proper risk management rule if you want to say alive in a good way in this market.
Trading can be considered a wild horse that is very hard to handle but it is now impossible to control it. If you have a strong mindset to make a career from it and you follow the rules then you will just become a winning trader in the near future.