Most traders believe they have to find a great trading strategy when they start trading. Then all they have to do is to be on the market each day, to use their great trading strategy, and the market will immediately start pouring money into their bank account.
Unfortunately, as everyone who have ever traded knows, it's not so easy. There are many traders who use intelligent, well developed trading strategies and yet regularly lose money.
The truth is that only 3% of traders earn consistently and consistently. There are certain beliefs, attitudes and psychological characteristics that are essential to the conquest of financial markets.
A big mistake for many traders is the belief that the market is forged against you. Such negative and wrong beliefs can have a significant impact on your ability to trade successfully. If you look at the market as a conquered territory then you do not look at it properly, according to reality, and therefore you can not hope to objectively assess market opportunities. The market is completely neutral - it does not care if you earn or lose money.
Our beliefs about us are another critical element of trading psychology. A personal feature that almost all profitable traders share is self-esteem. Winning traders have a firm, basic belief in their ability to earn - a faith that is not seriously shaken by several or even more losing trades. Of course, it is also important here that self-esteem should not become over-confident.
Here are some of the features of winning traders:
1. Risk tolerance - People with low risk tolerance are not ready to be successful in the financial markets. Every lucrative trader can absorb losses because he understands that market moves can not be predicted at 100%.
2. Rapid adaptability - Markets are not constant and are always changing. Winning traders can adapt to these changes. They are flexible in their thinking and quickly are able to change the negative sides of their strategy into positive ones.
3. Discipline - A winning trader remains disciplined and applies his strategy and pre-written plan regardless of the market score at the moment and whether his account has suffered from the last losing sequence.
4. Self-control - Successful market participants doesn't get excited too much. They retain hardhearted after great profits or consecutive losses and do not allow emotion to dictate their decisions.
5. Risk and money management - Winning traders always measure the risk before each deal. They never get the luxury of losing more than their account can afford, no matter what happens on the graphics or 100% confidence of an analyst.
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