The question of how to become a successful trader doesn’t have an exact answer. Some say that to become successful you need to work extremely hard, and dedicate all your time to achieving your goal. However, some people say that success depends on sheer luck. They say that hard work and dedication have nothing to do with it.
On the other hand, we believe that success is the result of developing and nurturing certain traits in our personal and professional life. But we didn’t just make that up.
Coming to this conclusion took a bit of research. By taking a closer look at the traits of successful people, we noticed that they had certain things in common that helped them further their success.
For example, Timothy Sykes is one of the people we observed, and he truly deserves his success. Taking a page out of Timothy’s book, we decided to write our own traits which we will discuss in this article.
It’s also worth mentioning that this isn’t a formula that will make you successful overnight, but rather a guide on what to do to clear a path to success.
Trait #1: Successful traders choose mind over emotion
It’s not uncommon for people to trade on emotion. They hear about a “once in a lifetime” opportunity that they “shouldn’t miss”, and they’re immediately hooked. This is a huge mistake.
The “sure thing” phenomenon is a myth. If you choose to trade on emotion, you’re in for a nasty surprise. The only way you can achieve success is to rely on your mind. Think, and then rethink your strategy.
Trait #2: They have smart money management strategies
What we’ve learned in life is that you’re either a person that manages your money well or a person that loses it all. There is no grey area.
The worst thing you can do is trade without establishing a concrete plan. If you do so, you’ll lose everything, and fast, especially if you use margin trading.
Of course, you cannot know exactly what trade is a winner or loser, but you can sit down and create a plan that you’re happy with, and that you’ll stick to.
Trait #3: Stop-loss orders are a must
A stop-loss order is specifically designed to help you limit your loss on an investment. Basically, a stop-loss order ensures that you’re not trading on emotion, which connects with the first trait on our list. Furthermore, it also comes in handy if you’re not currently available to monitor your stock.
Since a stop-loss order protects you from losing all of the money you’ve invested, it would be truly irresponsible not to use this trait.
The Bottom Line
Yes, it’s true that there is no formula for success, and no sure way to know if your stock will skyrocket, or immediately plummet. However, there are still ways to ensure that you’re moving in the right direction.
It’s no coincidence that all the successful people we’ve studied over time had these, and other traits in common. The bottom line is that if you want to clear a path to success, you need to keep a clear mind, make a plan that you’ll stick to, and always have a backup plan in mind. Forget about the “sure thing” myth and stick to what you know.
Although we cannot guarantee that following these traits will turn you into a successful trader overnight, we can guarantee you that they will help you in the long run. Overall, if you follow these traits you’ll see a significant improvement in your business ventures, and that’s what’s important.
