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4 Key Questions to Gauge Your Trading Success
Posted by admin | Posted in Forex Trading, Paper Investments, The Psychology of Wealth | Posted on 11-10-2008
The attitude of the individual trader (part of the important aspect of trading psychology) plays a huge role in success (or failure) in trading. For a trader to become successful, he or she must enjoy the “process” of trading. I have a few questions below that will help determine whether you are a good candidate to become a successful trader–if you don’t feel you already fit into that category.
Here are a few questions to help determine if you are, or will be, a successful trader:
1. Do you enjoy the entire process of trading - from studying charts, reading about and learning fundamentals, listening to and learning from mentors, and even figuring out what mistakes you have made in previous trades, and how you will improve from those previous mistakes? (Remember, a trader never stops learning and should never stop seeking knowledge about markets and trading.)
2. If you are a beginning trader with less than a couple years experience, are you willing to use the very sound money management principles required for survival in trading–even if it means meager profits (or meager losses) the first year or two?
3. Do you have the “patience” to wait for good trading opportunities to develop, and then have the “discipline” to follow your trading plan once you make the trade?
4. Are you the type of person who CAN stand to lose, and can you accept that trading losses are your own fault? (This is a very important question, because the typical trader has a more competitive personality. Remember that even the most successful traders have losing trades–and sometimes several in a row.)
If you have answered “yes,” to these questions, then your road to trading success will be less rocky. If you answered “no” to any of the above questions, then you face a more difficult task on the road to trading success, and you need to figure out what changes you should make to make the “process of trading” more rewarding.
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