How Can You Differentiate A Successful Trader

Discussion in 'General Trading Discussion' started by Adam Smith, Apr 12, 2018.

  1. Adam Smith

    Adam Smith Member

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    Is there a major difference between an amateur trader and successful trader? Well, there are many differences between both the traders. It is not that amateur traders are treated less; it is just that amateur traders do not understand the ways to succeed. They have not yet found the ladder to success. If you look an Australian trader you would clearly see how a successful trader looks like. You can easily spot the difference. Actually, trading not only changes a person to a good trader but also to a good human being. When a person transforms into a better trader he eventually transforms into a better human. There are many great lessons a person could learn from trading the CFD market. It is not easy, who says trading is easy? Every trader would have had a rough history. But once they achieve the rough history becomes something worth handling. Even though you would struggle to find a good trading approach, even though you would spend sleepless nights learning, those wouldn't matter when you witness the trading success. If you want to become an expert in trading, you should dedicate your time and energy. You should be ready to accept the struggles. Anyway, back to where we were, so what defines a successful trader? Let's see!

    A successful trader will always think about the risk factors of this market. They will never trade the market without having precise confirmation. As a new investor, it’s your duty to learn the proper art of currency trading. If you want to get a clear guideline, it’s better for you to go for some paid trading course. Knowledge is power. Find some professional trader who will teach you the basic stuff of this market. Learn the basic details of this market from the expert trader so that you don’t have to trade with confused trade setup.

    Knowing thyself
    You can easily enter the trading world and you can simply pick CFDs as your favorite trading. You can get into the field. But the problem is do you know yourself enough? Do you know your skills? Do you know your level of trading? Do you know the risk-tolerance level? Do you know your trading style? Do you think losses are tolerable? Are you emotionally stable? There is a lot of questions in front of you and if you can answer all the questions you are ready to go! If these questions make you frustrated and depressed it is better to focus on demo trading. This is how you can define a successful trader. If you throw the exact questions at a successful trader he wouldn't take much time to answer. He knows himself enough. He knows where he stands. He knows his capacities. Well, your personality has a great impact on your trading journey. Before you enter the live trading environment, know yourself.

    No degree, but education
    Of course, there is no requirement for degrees in the trading world but there is a requirement for education. You should have the education related to CFD trading. Without knowing what they are and without knowing the ways to trade, how will you manage yourself? There are many official websites that offer educational articles, so there are many ways to study the trading market. You can defend the trading mistakes through education. If you want to know another factor that differentiates a successful trader it is the education.

    Cuts losses wisely
    The wisest and the best way to cut loss are through trading mindset. When a trader handles his emotions wisely he will be able to reduce the losses wisely. As an example, if you become excited about a profitable trade, will you be able to manage the next trade properly? Would not you b reckless just because of the previously earned profit? Well, this doesn't happen from a professional. He has the total control of his emotions.
     
  2. gowiththeflow

    gowiththeflow Senior Investor

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    To be a successful trader you need to learn to when to take a profit BUT MORE IMPORTANTLY when to take a loss. You will never go bust taking a profit, no matter how big or small, but not being able to take a loss and seeing your funds ebb away is a recipe for disaster.
     
  3. TomLok

    TomLok New Member

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    I'll know. thanks for the info. Informative
     
  4. longtermbull

    longtermbull Administrator Staff Member

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    A good trader does not deal on emotion - only cold hard facts. Once you let your emotions get in the way of making an investment decision you can kiss good-bye to maximising your profits :)
     
  5. Buyonthedips

    Buyonthedips Senior Investor

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    If you can think of investments as empty boxes, simply buying and selling these empty boxes, then you will not get emotional attached. Human emotion is not good in a trader :)
     
  6. hniresearch

    hniresearch Member

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    • A successful trader is the one that works on proper discipline.
    • He has a basket of investment advisory services to change anytime when required.
    • A good trader in the stock market is always open to bear the risks, profit and loss.
    • These traders emphasize on long-term growth rather than the short losses.
     
    Last edited: May 26, 2018
  7. kirtimeliwal

    kirtimeliwal Senior Investor

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    Very useful and detailed explanation you have shared here. All the traders should know this information because this will help them in various ways.
     

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