I continue to reveal the characteristics of successful traders in this week’s episode of the 4 Minute Drill for Traders. I talk about how successful traders are WILLING to take losses and they take losses in stride. They don’t concern themselves with the loss, but instead focus on making money in the long run…
What has been your experience with taking small losses? We can all learn from one another so please share your thoughts… just hit the comment link below!
Hi.. Norman Hallett here with your next 4 Minute Drill for Traders.
Let’s continue our discussion of The Characteristics of Successful Traders.
There’s a conceptual point I want to make sure I mention… and that is that Success in trading can come at any level.
Whether you’re a beginner, a trader with some experience, or someone who makes his or her living strictly from trading, YOU CAN BE SUCCESSFUL.
Many people think that they have to have significant capital, or years of experience, to trade successfully.
… and that’s just not true.
(It IS true that if you don’t stay disciplined, focused, and rational, you’ll end up as a losing trader, regardless of your level of ‘expertise’.)
The VAST MAJORITY of successful traders started as small investors; they didn’t trade more than they could safely risk…. they learned from their mistakes…
… and they developed systems that worked for them and fit their personal styles.
Whatever experience you have as a trader… the rules of engagement are the same… Logical, focused, disciplined trading creates success.
Another point I want to mention in this Drill is that Successful Traders Specialize.
It’s simply not possible to understand and stay in touch with everything that occurs in all types of trading vehicles and markets across the world.
While some traders have developed systems that allow them to trade in multiple venues…
…. most traders specialize in a particular type of investment, and in a particular market.
You may enjoy trading commodity futures… and that enjoyment will help you focus and stay in touch with market events.
If you aren’t interested in currency trading, for example, don’t trade it…. because your lack of knowledge and motivation will cause you to lose focus and make mistakes.
Successful traders tend to SPECIALIZE…
… they pick an area to gain in-depth knowledge of, and they follow it closely, learning from past trends and patterns, and from their OWN trades.
If you’re a beginner trader, I recommend focusing narrowly on a particular investment vehicle and market…
…learn all you can about the market and about yourself, BEFORE you move on to other investment types.
and now I’d like to INVITE YOUR COMMENTS on specializing in your trading…
Were you a trader who used to trade any chart, in any market that looked good, and then decided to specialize?
Did you find your newfound ‘focus’ equaled success for you?
I know this to be true for many of the traders I work with.. but I want to hear YOUR experience.
Let’s hear from you!
OK That’s it for this addition of 4 Minute Drill for Traders.
So.. until NEXT WEEK…
Category: 4-Minute Drill for Traders