Jul

6

Characteristics of Successful Traders Continued – Week 64

Posted by 4 Comments

I continue to cover the topic of what it takes to be a successful trader.  This week I mention that successful traders don’t leap before they look.  In other words, they will not enter a trade on a hunch or on the desire to not miss out.  They take responsibility for their trades and maintain discipline…

Do you look before you leap?  Let us know what you think of this week’s 4 Minute Drill… just hit the comment link below!

Hi, Norman Hallett here with your next 4-Minute Drill for Traders.

We’ve been hitting hard on the SPECIFIC CHARACTERISTICS of the Successful Trader.

We’ve identified the fact that Successful Traders Set Goals and that you don’t have to be a seasoned veteran trader to start making money consistently.

We’ve discussed the fact that successful traders SPECIALIZE , that they \ take losses in stride, and lastly, that they stay focused during Rapid Swings in the market.

Now here’s another characteristic… Successful Traders Don’t LEAP Before They Look.

One of the most common mistakes inexperienced traders make is to trade when
they see an opportunity they think might be TOO GOOD TO MISS.

Jumping into a position based on a hunch, or on the belief that you may be missing an opportunity, is no different than gambling.

Almost every investor at one time or another has felt a rush of greed or enthusiasm for a trade –

–based solely on then desire not to miss out on a great opportunity that might be available.

Successful traders practice self-discipline, and apply skill and logic to their
trading.

They learn every day, and they use what they know to make intelligent
decisions on every trade.

Successful traders don’t worry about missing out –THEY FOCUS ON MAKING INTELLIGENT DECISIONS.

And Finally, to wrap up our discussion on the Characteristics of Successful Traders, I HAVE TO MENTION that successful traders DO NOT passively follow EXPERT Advice.

Blindly following the investment advice of a broker or analyst is foolish and self-destructive.

Oftentimes, the broker’s self-interest is completely different from yours, because the broker gets paid when you make a trade, whether it’s a good trade or not.

He or she wants you TO TRADE.

Analysts may have inside knowledge or years worth of experience, but in the end their opinions on the markets are just that – opinions.

Successful traders take responsibility for their trades and therefore their money.

They learn, they stay focused and disciplined, and they make their own judgments
about their trades.

And that sounds like you, right?

OK.. that’s it for this addition of 4-Minute Drill for Traders,

so Until Next Week… STAY DISCIPLINED!!!

Category: 4-Minute Drill for Traders

Comments (4)

Trackback URL | Comments RSS Feed

  1. Dr. Joel Whitton says:

    I often miss what turns out to be a good trade while I research what the stock or ETF is about.

    But, there is always another opportunity to get in early.

    So I don’t worry about missed trades.

    Great lecture.

    Thanks,

    Joel…

  2. Gregory says:

    Finally started getting OUT Monday mornings, joined a walking group, and not even looking at the market until a couple of hours before the close on Mondays. I now liken the simple theory of ‘Amateurs open the market and the pros close it’ to a week at a time. Amateurs open the week and the pros close it.
    This has really helped me stop jumping in too early and holding a position that invariably erodes to work against me. I mostly trade short term options and it’s amazing how much better they work for me towards the middle and end of the week. Cheaper to buy as well.
    Thanks Norman, good stuff.
    Greg

  3. Eileen says:

    I love the way you debunked the analysts’ opinion. I do subscribe to a lot of analyst newsletters and all do provide good research on a specific market. But in the end, their opinion is just as good as yours for a market with which they are unfamiliar.

    Thanks, Norman.

  4. admin says:

    Love to hear your comments on the Characteristics of the Successful Trader. Would you like to add one I didn’t cover?

Leave a Reply