Your attitude toward trading makes a huge difference in your success. What kind of attitude and thinking that's needed to become a successful trader? You should always have a positive attitude to win a trade. A positive attitude gets positive results. Perhaps that’s why successful traders share common psychological characteristics.
Let’s look at some of the key attitudes that guide the decision making of successful traders.
Comfortable with risk-taking: Traders whose risk tolerance levels are low, or who can’t deal with losing money, will not achieve success in trading. Because they don't understand that an aspect of trading involves losing trades. On the other hand, successful traders accept the unpredictability that comes with each trade and can handle the emotions that come with their choices. Trading isn’t the same thing as investing money in your savings account, as there are no guaranteed returns.
Adaptable to fluctuating market conditions: Successful traders are not attached to their market analyses – potential price movements down the road call for a strategy change from time to time, and they will act accordingly. It is more prudent to be right and enter a trade late than enter an incorrect trade and incur a huge loss.
Self-disciplined and objective: Successful traders make the effort necessary and take steps to fine-tune their self-discipline. They abide by strict risk management techniques and capital management rules they set for themselves. They carefully calculate potential risks against potential profits before entering any trade. In short, they have the ability to strategize and follow a plan.
Focused and balanced mindset: Successful traders have the ability to practice a healthy work-life balance. Although it is important for traders to be focused - particularly when it comes to proficiency - they understand that it can become an obsession without the right attitude. Make sure your trading endeavors are not at the expense of your personal life!
Emotional control: Successful traders don’t get overly excited about winning trades, nor do they despair about losing ones. They are able to manage their emotions, as opposed to being controlled by them. Fear, uncertainty, and greed are emotions that need to be under control when trading.
The Bottom Line
Attaining a proper psychological mindset is needed in order to become a successful trader. You must figure out how to develop positive trading habits, as they don’t come naturally. You will require rigorous self-discipline and put yourself through a self-examination. The changes you will make will affect how you handle many things in life, including trading decisions.
And remember ...
"Your actions affect your attitude and your attitude drives your actions. It can indeed be powerful to get your actions and your attitude working consistently in the same direction."