5 Things All Successful Traders Have In Common

Author: George Davis

5 Things All Successful Traders Have In Common

According to Business Insider, only 6% of traders who attempt to become professionals succeed. So why do most people fail? Trading is the art of patience and making thoughtful decisions. When actual money is on the line, most people tend to bail out or find it hard to adjust to the market conditions. If you are starting your career as a trader, you might want to go through the five qualities of successful traders to help you rise above others.

5 Traits of Successful Traders

1. Loss Cutting

Capital preservation is crucial to keep your trading account afloat. However, you may come across inevitable losses. Once you realize that a 50% loss requires 100% gain to overcome the financial slump, you will discover ways to bounce back from it. Still, success is not guaranteed, and cutting losses should be your number one priority when you start trading.

2. Optimistic Attitude

Sheer display of an optimistic attitude is necessary to survive the uncertainties of trading. Even if the Profit and Loss statement pushes towards a negative attitude, successful traders are masters of drawdowns and know they can bounce back.

3. Discipline

The heat of trading or the market’s high volatility can lead to misjudgments. Psychology will get you caught up in the moment; however, successful traders are disciplined and adhere to their strategies without being susceptible to market changes. Whether the prices shift in your favor or not, staying true to your plans is crucial to achieving success in the trading world.

4. Inquisitive

Successful traders are always eager to learn new things. They take notes from their failure and learn from others’ mistakes. For instance, Paul Jones became famous after the 1987 market crash and made a $100 million profit from shorting stocks. The inquisitive nature of successful traders allows them to draw lessons from changing market trends and act upon them.

Risk Management

5. Risk Management

Risk management is the Holy Grail in trading. Those who have mastered the art of taking risks and surviving their outcomes have become known as the best traders throughout history. Bill Lipschutz, the Principle and Director of Portfolio Management at Hathersage, is the best example of risk management. As he once made $25,000 in 4 months and lost all of it, only to win back $300 Million through Forex trading.

5 Traits of Successful Traders

While there are many qualities a successful trader might possess, following all of them is impossible. Some are born talented, and others have to work their way to the top. However, taking notes from the five principle traits of a successful trader will help you overcome the trading world’s challenges.

For more information on the stock market and trending industrial practices, we recommend subscribing to the PT Premium Service in the Proficient Trader App.