Is it the Right Choice for You?
What makes a trader successful? Many people debate this subject, and it is a mystery how some people acquire a portfolio of such high returns. Is it how dependent on how brave someone is, how well they can predict the market, or just pure luck? In the end, trading lucratively is a learned skill, and having the self-discipline to study and observe is a key factor in becoming successful.
Most people think that success is all about predicting the market and picking the right investment or trade. However, research shows that picking the right investments is the least important aspect of success. Predicting the market is equally unimportant… you merely have to notice what the market is doing at the time. At that point, the next step is to decide how you will handle occurrences and strategize. Success has everything to do with psychology, treating trading like a business, and developing systems that fit who you are.
To be successful as a trader:
- Develop a business plan to guide you. You must know who you are, set objectives, understand your thinking and your beliefs, lay out the big picture, develop all the systems you need (and not just trading systems), and develop a worse case contingency plan.
- Develop strategies that fit the big picture and strategies that will work if the big picture changes. We recommend at least three strategies here. Two that are non-correlated and fit the current big picture and one that you would expect to work well should things change. And since you can only trade your beliefs about the market, this step is very psychological.
- Work on yourself in an ongoing manner to continually evolve and improve your performance. Anyone can develop a system that makes 100% per year, but trading it to get that performance is something else. Why? People continually make mistakes, and you must be able to correct those mistakes. And if you repeat the same mistakes over and over again, it’s called self-sabotage-meaning that you really need self-work.
Still not sure where to begin? There are plenty of books and courses to help you along the way.