In this week’s 4-Minute Drill for Traders, I continue to reveal the characteristics of a successful trader. I’ll touch on a few points and focuses on the idea of specializing. It’s simply impossible to master every market, timeframe and the ins and outs of all types of investing. Therefore, I stress that successful traders tend to specialize in one or a few areas.
Do you specialize in one particular market, timeframe, etc.? We’d love to hear from you! Just hit the comment link below…
Hi, Norman Hallett here with another 4-Minute Drill for Traders
Let keep going on the topic of the Characteristics of Successful Traders.
We’ve covered the fact that longterm successful traders Set Specific Goals and I’ve also made you aware that it doesn’t matter what level of experience you have, you
CAN be successful at any level of experience…
… but you need to be steadfast in your commitment to being logical, focused and disciplined in your trading.. because THAT”S what creates success.
I suggested that … well, strongly suggested… that you SPECIALIZE… meaning pick a trading vehicle and a market … or stock sector… or whatever… to specialize it…
…. when you specialize you will find yourself more focused and knowledgeable in
what you’re doing… two key factors in trading success.
Today, I want to emphasize to you that Successful Traders Take Losses in Stride.
Look.. no one likes to lose. But losing is a fact of life for traders… the KEY is to limit your losses and maximize your successes.
A losing trade is not a failure. It’s NOT a reflection of you or your overall judgement..
Heck… if it was possible to be right every time, we’d all be rich!
The only way a losing trade is truly a failure is if you AREN’T willing to take a loss, without hesitation, and move on to find winning trades.
By ACCEPTING that they’ve made a losing trade and getting OUT of the position, successful traders focus on making money – Not on being right all the time.
Many traders feel they don’t want to ‘lose’ money on ANY trade… and they stay in losing positions in the hopes that it will recover to at least the break-even point.
There are 3 problems with that approach…
1. The position may never recover to the break-even point
2. Holding on to a losing position ties up capital that could be placed into a winning trade.
and 3. Holding on to a losing position is an example of unfocused trading and a lack of discipline.
Successful traders are willing to take small losses.
LET ME MAKE THIS IMPORTANT STATEMENT…
If you aren’t WILLING to take small losses.. or don’t have the DISCIPLINE to take small losses.. .don’t trade!
AGAIN… if you are not WILLING to take small losses … or you don’t have the DISCIPLINE to take small losses… DON’T TRADE.
Right now is a good time to share your personal experiences with taking losses properly and how that’s lead to YOUR trading success…
Don’t be shy… let’s hear from you. We’re all learning from each other here.
OK.. that’s it for this addition of 4 Minute Drill for Traders…
So, Until next week…
Category: 4-Minute Drill for Traders