Failed trades have various reasons, but successful trades always have similarities. We always see or hear stories and experiences of successful traders, whether it is George Soros or Nicholas Darvas. Many successful traders' principles have been refined over time and can still be regarded as trading scriptures today. Aligning with these great traders can help you avoid detours and achieve profits. On the other hand, many who stray from these trading principles have already proven that failure can be very close.
Summarized 7 good habits of successful traders:
1. They have a persistence for success. Many of the best traders are the type who can overcome difficulties, learn from mistakes and failures, and then persevere until they succeed.
2. Successful traders know when to exit failed trades promptly. They can accept the reality of their mistakes without being dominated by their ego, which is key to leading themselves and their careers to success.
3. Within the trading time frame, let successful trades last as long as possible, ensuring that profits exceed losses.
4. Avoid allocating a portion of funds to each trade. If you often take such risks, you will eventually lose all your capital.
5. Every profitable trader reacts to real-time price fluctuations rather than predicting future trends. Gaining trading signals from price fluctuations is much more practical. Trading based on predicted price movements is purely wishful thinking.
6. Good traders are bullish in a bull market and bearish in a bear market, until the market corrects.
7. Successful traders focus solely on making profits. Proving themselves right, showing off, or predicting future trends is not as valuable as the sound of money entering their accounts.
No one likes failure; we are all trying to build something positive and constructive. We hope to always stay on the right path, but things often go awry, and sometimes we inevitably fall into traps.
If you want to maintain profitability in trading, you should also avoid the following 7 bad behavioral habits:
1. Attributing the results of failed trades to external circumstances is undoubtedly a destructive behavior. High-frequency traders, market makers, and irrational markets can easily lead principled traders to make reckless trades. The less they recognize the responsibilities they should bear, the greater the likelihood that their trades will continue to fail.
2. Trading without a plan and making decisions based on feelings is definitely the worst thing. Letting opinions and predictions guide entries and exiting due to emotions can quickly deplete your funds.
3. Trade first, then learn how to trade; the order is completely reversed. If traders do not do enough homework before trading, they will learn lessons in the market, and the lost funds will become an expensive tuition fee.
4. Being too self-centered and eager to prove oneself right, rather than focusing on profits and losses, will only accelerate the disappearance of capital.
5. Fighting against market trends and denying real-time price fluctuations will quickly contribute funds to those who follow the trend.
6. Without principles or risk management, no matter how good the trading system or method is, traders will still fail.
7. Besides trading, there are no other pleasures in life; friends, family, and health are lost, and only trading results become the standard for measuring self-worth, which can easily lead to mental and emotional breakdowns.
The road to success requires avoiding these bad habits. Successful traders and unsuccessful traders are divided by different behaviors: either correcting bad behaviors for rewards or continuing on the path to destruction. This is something every trader should take a moment to reflect on.
Let’s encourage each other!