A successful trader is someone who has mastered his craft after years of a combination of research and mentorship from a successful colleague/boss and through lifelong learning. So, if you were tempted to ask if a successful trader is born with such incredible traits, the clear answer is “no!” In fact, success in this field is a result of absolute discipline, as training is useless if one doesn’t have discipline.
Below you’ll find six tips on becoming a successful trader:
#1 Wake up early
If you think trading is a nine-to-five job, in a way, you are right. The stock market opens every morning, whichever country you’re in. However, take note that other markets in different parts of the world, may open when your market closes, therefore, waking up early is a part of your discipline training.
Starting the day early with exercise and good food keeps your mind sharp when quick decision-making is needed and these are all things that will help you stay ahead of the pack.
#2 Open your mind to learning
If you think you have what it takes to be a successful trader, you’ve got to have a mindset of accepting that there are new things to learn every day. This mindset lets you keep an open mind, since there are a lot of new things your mind needs to take in daily.
Start your day with some meditation, clear your mind and be ready to take in new things. As soon as you turn on the TV or scan your phone in the morning, you will look at things in a better way or discover a different view of previous knowledge you gained.
To be successful, traders should understand that there is a certain psychological mindset that they should have before taking the daily plunge, as success depends on this.
You cannot discount the fact that research is a huge part of becoming a successful trader. Knowing where to invest requires a level of analytical prowess which is always tied to researching companies and executives.
Warren Buffet said, “In the business world, the rearview mirror is always clearer than the windshield.” This nugget of wisdom depicts a successful trader who knows how to use current information for future investment decisions as you cannot invest in a company that you don’t understand.
#4 Patience is a must
Trading means playing the long game and when it comes to money, impatience is never good; it takes a lot of practice, but you’ll get the hang of it and profit from it! Successful trading is all about taking measured risks for considerable periods of time, at enough volume, to be able to generate profit. The point is to minimise risk and to generate wealth over the long-term and a patient mindset means imagining holding onto an investment position forever.
#5 Get guidance
Admittedly, there are many things to learn and remember before you start trading. To cut the learning curve, getting some guidance from mentors will do wonders as these are people who have much experience in their careers as traders. Don’t just use this as a shortcut, instead, see them as valuable resources who can make your journey easier.
Another way is to boost your career with trading courses; there are several available online or through blended learning (online and face to face). The key is to find the right one that will help elevate your craft and build discipline.
#6 Evaluate your progress
The best way to a successful career as a trader is to self-evaluate your growth – list your goals and mark your progress. There will be periods of low growth but if you focus on an upward trajectory, you will achieve your goal.
Being a successful trader is not easy, but there are a lot of resources available to help you get in the game and conquer your weaknesses. Just remember that trading is a long game, and the sooner you cultivate good habits, the sooner you will rise to the top.