Characteristics of Successful Traders Part 4 – Week 63
The success characteristic I cover this week is FOCUS. I’ll explain that successful traders stay focused in a rapidly changing market. They have a calm and rational attitude while maintaining their focus and keeping their composure. Watch now to learn about the characteristics of a successful trader!
How do you maintain focus while you trade? We’d love to hear from you… just hit the comment link below!
Hi… Norman Hallett here with your next 4-Minute Drill for Traders.
For the past several weeks, we’ve been going down my list of the Characteristics of Successful Traders.
… and I’ve identified these characteristics from working with traders and their trading discipline for the last two decades.
I’ve shared with you that successful traders Set Clear Goals and I’ve made it clear that success as a trader can come at ANY level.. beginners, intermediate and advanced traders alike.
… that successful trader specialize in the markets and market segments they trade and that ALL Successful traders take their losses in stride.
Today I want to cover the success characteristic of FOCUS.
and more specifically…Successful traders stay focused during rapid swings in the market.
Most of us were raised to think that it takes years of hard work to acquire wealth.
That viewpoint doesn’t apply to trading in the markets… you can make thousands of dollars in minutes under the right circumstances.
Successful traders understand that money can be made or lost extremely quickly, and they stay calm and rational.
Why is that attitude important?
Let’s say you’ve made several thousand dollars over the course of an hour trading futures contracts. You’re THRILLED AND EXCITED.
…and as a result you may lose your composure and start making irrational trades. You may stay in the position longer than you should, for one of two reasons…
==> You think the market will keep going up, and you don’t want to limit your gains. or
==> The market falls, and you don’t want to give up all the gains you’ve made, so you hold on in hopes your position will rally.
If you ACCEPT AND UNDERSTAND that huge amounts of money can be made in a short period of time, you are less likely to become UN-disciplined in your trading.
Successful traders take their gains in stride, no matter how large.
They quickly move to protect their positions by setting stops, or covering a percentage of a their position.
Successful traders STAY RATIONAL AND DISCIPLINED in the face of rapid gains or losses because they understand the nature of trading…
…and that large sums of money can be made OR LOST… depending on your ability to FOCUS and apply your money management strategies.
OK.. that’s it for this addition of 4 Minute Drill for Traders.
So.. until Next Time…
STAY DISCIPLINED!!!!
Category: 4-Minute Drill for Traders
Hi Norman,
It is very good.
Thank You
“This to will pass” — Anon
In oder to stay focused while trading you must find the time frame that works for you. I was always jumping back and forth between 3-5-10-and 15 min time frames, always frustrated. I finaly figured that i must stay with one frame, and use the one that makes me feel good. that one for me is the 15 min chart. I found having less bars on the screen gives me more time to focus on what is realy going on instead of analizing the past.
I’m feeling short-changed. How can you have a 4 minute drill for traders that only lasts 3 minutes? I want my money back. Mmm hang on…….
Always start your trading day with a short 10-15 minute centering technique.
as a trader you need to learn how to control your emotions when trading, what i mean by that: emotions of happiness and excitement and emotions of sadness, when i have a big win i would say: this is normal, nothing to be exited about, it’s just a number, this is not money, trading is dealing with numbers that can go up and down, and i am always looking for my trigger points to make an action as i am implementing my trading plan, i can care less about results, there is no way i can predict my trading results… just remember don’t be too happy and don’t be too sad and you’re dealing with numbers not money”
How is YOUR trading focus?
Norman