Today, as I look past the fireworks and cook outs and think about what this July 4th holiday in America is really all about: independence for the United States from Great Britain. The colonies sought independence from taxation without representation, independence from a King, and freedom for the states to profit from its own labors and commerce.  There was a dividing line where the colonies decided to become their own nation instead of just a territory in the British Empire.

I believe traders that are successful have that same day where they start moving in the direction of  becoming independent from all the bad behaviors, wrong thinking, emotions, and big risk taking that causes new traders to go through the painful cycle of making and then losing money. This is a battle and it must be fought to turn bad habits into good habits through understanding what makes money and what does not. Successful traders have to be bigger than any one trade or bad habit to be able to make money consistently in the markets over the long term.

10 Things that Great Traders have Declared Independence From

  1. Great traders do not have to be right about any one trade, their success is based on winning more than they lose on a large amount of trades.
  2. Great traders do not need trade ideas from other traders, they trade a system and method independent of others opinions.
  3. The best traders are independent of holding on to losing trades stubbornly trying to prove they are right, they cut losses.
  4. The best traders are not prisoners of their emotions they can make clear headed decisions due to trading like it is a business not an ego trip.
  5. Rich traders became rich because they had systems that allowed winning trades to be free to run as far as they would go. They are independent of price targets.
  6. Rich traders trade independently from CNBC sentiment.
  7. Great traders trade charts independently of market sentiment.
  8. Great traders trade independently of talking heads on financial television.
  9. Winning traders are independent of market gurus they have proven systems and methods.
  10. Great traders are free from the risk of ruin because they never risk more than 1% to 2% of their total capital on any one trade.

Everyone in the U.S. enjoy your holiday! 🙂