Being a good trader is about developing certain mental qualities. It is the process of constantly pushing yourself to grow better and stronger.
A profitable trader is not necessarily a good trader. Likewise, a good trader is also not necessarily a profitable one, yet a good trader ultimately finds himself with a much higher probability of being profitable/ of finding success in the long run.
This means that success, with the aforementioned qualities, becomes predictable, and repeatable.
So what are those qualities then?
1. Rather than succumbing to your emotions, you manage them skillfully, which helps you make wiser choices in trading.
Good traders understand how their emotions can influence their trading performance.
In an effort to make the best decisions possible, and to be constantly on top of their game, they understand the importance of being present and allowing themselves to feel their emotions from a place of freedom, without ever letting those emotions sway their decision and override their proven process.
A mindfulness practice is often the goo d traders’ best ally. The practice also helps them come to terms with things that are difficult to accept or to let go of.
2. You feel confident in your ability to adapt to change.
Change is all around us, not just in the market. Conditions are always changing.
Good traders know this and they focus on getting better at adapting to change, rather than resisting it. That’s where real peace lies.
Their focus is also on what they can control instead than what they can’t. And they know the difference.
3. Mistakes, although sometimes uncomfortable, make you deeply inquisitive and hungry for improvement.
You understand that we learn from every step we take. So you don’t punish yourself (and others) for your mistakes.
Trading is a tale of struggle, reassessment, and adaptation. You’ll fail, you’ll make mistakes, but you’ll learn.
Most;y likely, that’s how the progression will look like. And so, resilience, staying power and focus on growth are key elements on this journey.
4. You genuinely celebrate other people’s success.
Trading is a tough profession. Losses and drawdowns are challenging periods that cause many to break.
Good traders never compare their own results to others.
What’s more, they never try to belittle other fellow traders, wishing them to fail. They only display compassion, support, and understanding.
They don’t feel as though other people’s success somehow diminishes their own achievements. Losers think like that, and in return, losses and disappointments are what they keep reaping in their lives.
5. You are comfortable trading according to your rules.
Good traders make decisions with relative ease because they understand their rules and what they are trading and looking for in the market.
Their commitment to their trading plan and process is unshakable. They do not let other people’s opinions affect their judgment. They’ve learned to trust their own. And they catch their own fish.
6. You have a thorough understanding of your strategy, its probabilities, and your inherent tolerance to risk.
Your commitment to your trading strategy, plan and process is unshakable.
At this point, trading is not an intellectual game for you anymore. It’s not about learning grandiose theories, it’s about experience and practice – which you’ve done enough of.
You understand risk, and you know that managing it will not only preserve your capital; it will also protect your emotional well-being.
7. You focus on sharpening your skills, rather than showing them off.
While some people seek validation or recognition from other traders on Social Media (especially Twitter) for the trades they take, good traders are less concerned about gaining recognition. Instead, they’re intrinsically motivated to become better.
8. You view trading losses as opportunities for growth.
Good traders don’t waste time feeling sorry for themselves while giving away their power to the market. While losses cause some people to grow bitter, they make good traders grow better.
9. Good traders feel good about themselves, whether they win or lose.
For the good trader, failure is not the end of the world. It’s, again, an opportunity for growth. So they bounce back rather easily.They also understand that success is equally as fleeting as failure. So good traders express gratitude for what they already have in life and what others take for granted.
Their self-worth depends on who they are, their character and the positive states of mind they choose to generate. Their self-worth is not found in what they have achieved or what people think of them.
10. You’re a master at delaying gratification.
Good traders view their trading goals as a marathon, not a sprint. They’re willing to tolerate short-term pain when it can provide long-term gain.
11. You’re an independent thinker.
Good traders think for themselves. No one acquires the skill of independent thinking merely by going to a college/university. In fact, the opposite is true — such a skill is often acquired via autodidacticism and direct experience.
12. You approach trading with openness and curiosity.
You can trade more effectively only if you let go of the fear of loss and wholeheartedly embrace its inevitability.
Only then can you fully prepare for it while staying open to the opportunities it also brings forth.
13. You do not obsess about money.
Trading for you is all about self-actualization and freedom. Money is just a way to gauge your progress on this path.
14. You’re open to learning.
Learning is always an ongoing quest for good traders.
If you didn’t recognize yourself in any of those 14 statements, rest assured, you can develop these qualities in a record period of time.