By Rob Colville on November 22, 2013 in
Successful traders are made. They are not born. You don’t need to be academically gifted to make a success of trading.
You don’t need to be good at maths, physics or have a doctorate in finance. In fact you don’t need any of that. If I can do it without any of this, you certainly can.
But I shall tell you this much: an essential component of successful trading is simply having “right attitude.” It sounds almost too easy doesn’t it? But this is something that many amateur traders who decided to learn “the hard way,” have done…but not before nursing our battle wounds from the market! This is something I don’t want you to have to go through as it’s painful, costly and, frankly, unnecessary.
For successful traders, having a profitable trading strategy is one thing. But contrary to what you may expect, having the mindset of a successful trader and their attitude towards the market is everything. For experienced and successful traders, the latter is far more important for your success…by a country mile!
If you are someone who is prepared to be patient and disciplined, waiting for trades – no matter how long – and will only trade them as and when they meet your rules for entry – and nothing else… then you will be head and shoulders above most many people who simply have a go.
Patience and discipline are two core attributes embraced by experienced, successful traders. They certainly made me as a trader and, yes, I did have to go through a lot of pain to realise this. After all, they don’t come naturally to my personality as I’ve always been fairly rebellious since my formative years at school, and beyond, with a distinct lack of self-discipline. As for patience…you can forget it. I’m infamous for being inpatient…especially when it comes to London’s transport!
So, this naturally had an adverse affect on my trading, going on the basis of how you do anything is how you do everything. I jumped into trades which simply were not there, went from strategy to strategy, and cursed the market and everyone else in it…and all on this was on a good day!
That was then, this is now. From simply staying true sticking to several higher timeframe strategies, trading only when the rules told me to and nothing else, on its own, transformed my trading for good.
Even if by nature you don’t consider yourself as a particularly patient or disciplined person, but more of a compulsive and excitable type who likes always being in the action…don’t worry! All is not lost. You can definitely still make a success of trading.
From simply having an awareness of this will help to transform your prospects. Appreciate that you need to impose a patience and disciplined state of mind for long-term success in the markets. Otherwise, the market has a funny habit of punishing people who do differently.
Consider this; are you trying to give something up but just can’t? Perhaps you’re a smoker who is struggling to kick the habit despite your best intentions.
If that sounds about right then I have news for you. Ever heard the old adage: How you do something is how you do everything? If you are unable to demonstrate discipline in kicking the habit then that personality trait could rear its ugly head in your trading in the form of rule breaking. I’m not saying that if you are trying to give something up and can’t that you are doomed to failure as a trader – but as long as you have an awareness of it and are able to pre-empt this then you will certainly be one step ahead in the game!
The third trait is simply having a respect for the market. It can do anything at anytime!
It doesn’t owe you or me a living, care about whether you’re from, what you do or what strategy you follow…it will do its thing regardless, leaving us to play with the probabilities.
So, there you have it: patience, discipline and a respect for the market. Those three alone will set you apart from the crowd and transform your trading.