We have seen that, many people do trading, but only few of them will become a successful trader. They are easily differentiated and identified among all the other traders. They possess some special characteristics which are not present in any other normal trader.
The common characteristics of a successful trader are:
A successful trader has a well trading plan: A successful trader prepares a trading plan before they are going to do trading. They build a trading plan which is suitable for them. They learn new things to make their planning more effective. A successful trader will not enter a trade without a successful strategy in mind since he knows that it is like going into a battlefield without a gun with him or placing his money in a slot machine.
A successful treader maintains discipline: A successful trader maintains discipline while trading. Discipline means, having and sticking to a trading plan. This is absolutely essential to success. Depending on time, thoughts or what seems like rational thoughts at the time, in entry and exist strategy will inevitably destroy a trading account. Therefore, every successful trader maintains a trading discipline.
A Successful Trader is Aware of Money Management: A successful trader knows about the money management system. He always tries to maintain some surplus amount to secure his trading.
A successful trader follows trading psychology: A successful trader is an unemotional person. He does not get excited to the market fluctuations. He is well educated about the trading psychology so that he can control his emotions like fear, greed and nervousness. A successful trader has more patience, so he does not respond or consider the short span of market changes. Most of the time he does the trading with a long term perspective.
A successful trader is a persevere person: Every trader fails, but not every trader knows how to come back from failure. A successful trader finds the reason for his failure.
A successful trader understands the importance of research in making a decision, hence, he will not base his decision on pure guts since he will have information that will help him decide specially during those times when he is not sure about his own perspective.
The above said characteristics, play an important role in turning a normal trader to a successful trader.