Things Successful Traders All Have In Common
I’ve been making money from the markets for over 30 years, and during that time I’ve seen hundreds of colleagues come and go. Many have become multi millionaires several times over, whereas some have dusted their accounts and given up.
In preparation for this blog post, I’ve reflected on my own experience and why it is that I’ve been successful. Then I considered what my rich, successful colleagues do differently to the losers.
Looking at my own life, I trade two reasons:
- I love understanding the markets and why they move. It’s like a never ending puzzle. As traders we’re constantly trying to out fox the other market participants and garner an advantage. This never ending challenge is what keeps me hungry.
- Freedom. As a professional trader I’ve got more freedom than most. I work when I want and the money I make is a symptom of my skill, not the hours I spend at my desk. Over time it’s also allowed me to compound my finances. A winning month now gives me a significantly greater monetary return than 10 years ago, due completely to the power of compounding.
Pay attention to the first point.
My love of trading is the single greatest reason I’ve succeeded as a trader.
To be good at anything in life, you need to enjoy it. The moment it feels like a grind you’re doomed. I love this quote from Confucius:
I love what I do and I commit to it wholeheartedly.
And when I observe my successful colleagues I also notice how much they enjoy the process of trading. Money and freedom are merely a byproduct.
This is the one, overarching thing that all successful traders have in common – They love trading.
If they don’t bounce of out bed thinking about the markets and only do it for the financial rewards, any success is short lived.
Other common traits I observe in us that have mastered the art of winning consistently are:
Time – Each trader has invested a huge amount of time to improve their trading abilities.
Money – Traders generally start with a reasonable sized bankroll to begin with, this allowed them to trade conservatively while they made the adjustment to full time trading.
Support – All the successful traders I know worked with the full support of their friends and family. Being a day trader can be stressful at times of high volatility, having people around you to offer support when it’s most needed makes a big difference between staying level headed and making emotional trading decisions.