A successful trader approaches the markets as a serious business, with tools and attitude drawn from their live trading experience that give them confidence and help them handle trades, moving forward.
In fact, there is nothing you can do to make sure you’ll succeed in every single trade: even with carefully prepared trading plans and strategies, you can’t be sure these work all the time. However, developing over time a right trading mindset will give you a higher chance to succeed in online trading.
Here are some good habits that you can incorporate to help you become a successful trader:
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PREPARATION
Before you start your trading career, make sure you have made the right preparation, being equipped with knowledge and practice. There are many Training Companies and Course Providers that specialise in qualifications to work in Finance and Investment Markets in the UK that will help you acquire trading knowledge.
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DISCIPLINE
Develop a trading plan and be consistent in following it on every trade. Keep improving your plans to make them fit every trade you make and be self-disciplined in following it, even if you’d love to just make a shortcut out of it.
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DATA
Instead of listening to opinions and predictions, base your decisions only upon real data gathered by your own research on facts, current market trends, and other factors that affect the market. This way, your trading will seem pretty much more systematic rather than gambling.
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FOCUS
Do not start a trade looking forward to the outcome. Focus on the trading process, making sure that you have followed your plan. This way, you will be learning more about trading at the same time.
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PRUDENCE
Trading with a high leverage is tempting because it can give you an opportunity for a higher profit, but it can also let you lose too much relative to your capital. Trade only what you can afford to lose. Be kind to yourself when you are in drawdown. Constantly remind yourself that your account balance does not represent your worth as a human being.
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AWARENESS
Once you have hit your daily limit, stop and identify the reasons for your loss to understand when and why you started losing and take note of that to improve your future trading chances for success.
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JOURNAL
A successful trader always keeps a trading journal, a record of all your trading activity, in which you write everything about your trades from your loss, profits, trends, decisions, etc. It will be an important reference for future trades, as a record in different kinds of trading situations, allowing you to assess your trading performance. Keep accurate records and review them regularly.
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LEARNING
Your losses can be your advantage if you use them as step ladders to make you a better trader. Understand what made you lose today, and then apply what you have learned tomorrow. With this kind of mindset, you can get a better understanding of different trading situations and how you should handle them.
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REALISM
Once you already have a proven strategy that can help you secure a win against a lot of trades, you will notice that you have been consistently accumulating profits which slowly makes its way up to your initial expectations.
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GOALS
A goal sets the tone on how you should trade. Once successful traders targeted return is met for the week, they do not enter another trade or if they do, they would risk smaller percentage of their capital.
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