Getting Started in Currency Trading, by Michael Archer and Jim Bickford
December 30th, 2008Page 118 – Characteristics of Successful Traders
Successful traders have absolute control over their emotions – they never get too excited over a win or too depressed over a loss. The more a trader is emotionally involved with the money they are trading, the harder it is to make clear headed decision about market entry and exit
Successful traders do not panic – they make evolutionary adjustments, not revolutionary changes to their trading style
Successful tradersdo not flinch at making the decision to take a loss, they never let losses ride, and then never add to losing trades. If something is making you money, you add to it. If something is costing you money, you unload it as soon as possible.
Successful traders treat trading as a business and not as a hobby
Successful traders stay physically fit
Successful traders only trade with money they can afford to lose
Successful traders spend at least as much time focusing on money management as they do on trading method
Successful traders keep a low profile
Successful traders ‘listen’ to the markets and don’t try to impose their will on the markets
Successful traders come to work with a plan that includes many contingencies
Successful traders come to work with predetermined answers to the following questions:
What if prices open sharply higher or lower?
What if the market quiet / volatile?
What if the market makes new highs / lows?
What if the market goes up early and reverses later?
What if the market goes down early and reverses later?
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