By Admiral Markets

Dear Traders,

Managing hundreds of thousands of dollars can be very stressful.

Putting in multiple decades at a trading station, teaches you not to bring that stress home with you.

However, it is easier said than done.

To be a successful trader, you need to have certain personality or character traits.

But be aware – gaining these traits is not easy.

The most rewarding things in life come from the result of hard work and commitment, which in turn generates opportunities.

So what are the traits of these successful traders?

Discipline

Either you are going to be a trader or you are not.

There is no middle ground here.

No matter how badly you trade, the only fatal trading mistake you can make is blowing out your account and exhausting your equity completely.

Anything short of that, you can recover from and still become a profitable trader.

Discipline will definitely help you recover even after some serious losses.

Make a plan and remember that even if you already have discipline – you need to exercise it consistently.

Reactiveness

It can be very dangerous if you overreact and make quick decisions without thinking.

For that reason, you need to do a proper analysis and react correctly once an opportunity arises.

Traders who hesitate pulling the trigger either:

1. don’t have confidence in their trading strategies; or
2. are too afraid of losing the money e.g. not accepting the loss.

Experience will shape you into a reactive trader.

Patience

You need to learn to protect your trade especially when the market is very volatile or very calm.

Before entering a trade, you need to know your Stop-Loss and your potential profit target.

Pre-determining these levels will eliminate impulse trades – trades that are placed based off your gut feeling.

The market is like a shadow:

…if you chase it you will never catch it…

…but if you stand still, it will come to you.

Be down-to-earth

I have always been realistic in my goals.

Having a realistic plan and routine has saved me a lot of trouble during bad market days.

Every trade you make, takes some of your mental attention and energy.

There’s no point in wasting that energy on trading in a market that’s just lying dead in the water for hours.

If that happens, I cut the trade because I know there will always be another chance.

Be quick to cut your losses short and patient enough to let your profits run.

The moment you find yourself praying for a trade to reverse, get out of it.

Remain calm

It’s easy to get excited when everything is going well, but it’s how you respond to stressful events that counts.

One of the personality traits of successful traders, is to remain calm when the going gets tough.

A successful trader knows how to control his emotions.

And although he feels both the thrill of a win and the ache of a loss:

… he refrains from impulsive, emotional reactions to the market…

…and remains calm in every situation.

So many times I have mentioned that being euphoric will get you nowhere.

As soon as you feel euphoric – stop trading for the day.

Losing your temper once in awhile is forgivable – but doing so on a regular basis will show that you don’t have control of your emotions.

Keep learning

Markets constantly change.

One of the reasons why you should visit important educational webinars is to stay in touch with both trends and ever-changing market conditions.

Have you ever wondered why once great trading systems don’t work in today’s market?

It is simply because they are not adapted to the current market conditions.

Successful traders have the ongoing ability to learn new skills, markets and strategies.

They are very competitive, possessing a relentless drive for self-improvement and constant learning.

During the years of trading and talking to my trading buddies, I have come to realize that (at least for us men):

…the most successful traders get some kind of fulfillment from the act of trading in itself…

…and that a monetary measure of success can be secondary.

We enjoy trading, and you as a successful trader should enjoy trading too.

Have you ever felt helpless during trading?

Did you sweat and pray for your trade to reverse?

If the answer is positive to both questions, then watch some tips on how to remain calm and in control below.

Do you know about any other trait that a successful trader must have and we have failed to mention?

Feel free to let us know in the comments section below.

Cheers and safe trading,

Nenad

Article by Admiral Markets

Admiral Markets is a leading online provider, offering trading with Forex and CFDs on stocks, indices, precious metals and energy.