While there are many ways to make money in the markets from long term buy and hold investors to day traders in Forex there are some common traits that emege after studying both succesful traders and investors.
- They focus on their edge. The successful market speculators stay with the process that they are experts in. They double down on their strengths and stay away from style drift into timeframes and techniques they have not mastered.
- They are creative. Profitable traders have created a successful system that fits their own return goals, risk tolerance, and personality.They don’t copy others they create their own strategy.
- They learned lessons from others. Almost all profitable traders learned key principles and lessons from other traders that came before them whether it is from a mentor one on one, books, seminars, newsletters, or eCourses they took short cuts from other’s successes and failures and didn’t have to learn everything the hard way for theirself.
- They create good risk/reward ratios. They are good at the basic process of both cutting losers short and letting winners run inside their timeframe. This not only is the key to profitable trading but the key to long term survival by not letting losers get out of hand.
- They never quit learning and growing. The top traders never stop trying to improve their trading and keep their edge in place. They continue to read, study, and backtest as life long learners.
- Perservence. The profitable traders are the ones that didn’t quit. The common trait of the 90% of traders that fail is they all quit before they were successful.
Regardless of timeframe or markets traded these common traits are some shared by the majority of profitable traders.