The 7 Habits of Highly Profitable Traders

The 7 Habits of Highly Profitable Traders
The 7 Habits of Highly Profitable Traders
Photo Credit: Images Money

Here are seven simple ways to move into the top 10% of traders that are profitable long term. 90% of traders do not do these seven things, you can start to do them tomorrow with the right homework and diligence.

  1. Profitable traders are trading a winning system based on buy signals and sell signals that create good risk/reward ratios based on historical price patterns.
  2. Profitable traders have trading plans. They know where they are going to buy and sell if they have the opportunity before the trading day begins.
  3. Profitable traders trade with a position size that does not put their trading account or lifestyle in danger if it is a losing trade.
  4. Profitable traders are always looking to go in the direction of the trend for their time frame, the path of least resistance to profits is their goal.
  5. Profitable traders are able to be contrarian and buy breakouts and sell breakdowns short They can also buy fear and sell greed when their system says it presents a good trade opportunity.
  6. Traders that trade price action instead of their opinions can be very profitable because they are not trying to beat the market they are trying to follow it.
  7. Traders that trade their predictions, opinions, and egos for listening to what the market is saying through price action can make money over the long term.

Profitable traders trade profitable systems with discipline and the right position sizing while unprofitable traders look for predictions and trade too big, too much, and too randomly.