Let’s talk about habits. Are they crucial to the very essence of being a good online trader? Absolutely. Why so very few traders become rich and why plenty of online enthusiasts don’t become wealthy is defined by this important factor called habit – because good traders make it their second nature to habitually trade for most of their daily routines.
While they may not do it each and every day of their lives, they do it a lot, obviously. Habits greatly matter in this discussion, so let’s get right to it. Here are the traits that you need to learn:
Balancing patience and impatience
Can you patiently wait while being impatient at the same time? That sounds impossible. But the truth is, the big leagues of online have the 2 traits in a perfect balance. So what does it mean? In all of their trading acts, literally all of them, they get anxious and worry a lot all the time. They are quick to jump into whatever trading advantage they can see, but then, there are also times when they quickly get out of them too based on the chart trends they’re seeing.
Although they can manage the levels of such feelings efficiently as they gain more experience, they really worry about how their day-to-day trading might eventually turn out – it is the chief reason why they always do their very best to come up with the best decisions.
While there are times when they are quick to get out from a strategy they’re executing, there are a lot of moments too, in which they will just say “I will wait for a little longer to see how this move pans out.” The best way to describe the patience/impatience trading balance is this: being patient with winning trades and being impatient with losing ones.
If we are to illustrate such a principle, we could think of it as a picture with a set of small red dots, and a single occurrence of a big green dot – red being an indicator of waiting, and green being a symbol for proceeding. With another set of small red dots, and another presence of a big green dot, the cycle goes on and on.
The bigger the dot, the bigger the move or monetary value that should be involved. And since red is represented as small objects, it means the action or value to be staked at those moments should not be very big too. If you understood that pretty well, and if you plan to make it a habit, then you should be on your way to becoming an excellent trader.
If you think that many of those great traders succeeded easily during their first tries, you’d be hugely wrong. In fact, most of them lose a lot more than you can possibly imagine. Even during their expert days, they still lose heavily. But what they do is they become impatient with their losses, that’s why they are quick to come up with more solid plans and actions on how to improve on their methods.
Be impatient if you’re learning less than you should, but be very patient on those things that you can’t control – this a statement that should belong to your main driving force online.
Focusing on higher profit instead of proving smartness
Everybody wants to prove they’re brilliant, who doesn’t? But sometimes, the smartest of us get too blinded by our own perception of ourselves in terms of knowing the right stuff to buy and invest in, that we fail to realize they don’t get the highest returns of investment.
No matter how wise or intelligent you are, you can’t just implement your knowledge into how the online market works all the time because there are lots of people therein that are just way smarter than you.
You have to listen to what the market tells you, not the other way around. You cannot tell the market “Do this because my experience tells so,” or “Do that because the knowledge I attained will prove me right.” The market is what’s right all the time, so listen to what it says.
You have to set your mind in choosing those actions that make the most money, not on how beautiful an investment object is, according to your own definition. So in online trading, you have to focus on the winning side always.
Even if you dearly love a certain currency because of some nostalgic elements attached to it, you have to be quick to switch from one portion to another. Forget about currency loyalty. Instead, focus on one major aspect that can really make you succeed – your own money.
Using charts and visuals wisely
In the candlestick topic we discussed in the previous pages, it is emphasized that they should be absorbed and understood thoroughly because they are among the most useful tools in trading. Successful traders don’t just look at charts, they internalize them deeply because aside from telling them the best directions the market is going, they can also tell where other good traders are lining up.
All traders perform technical analysis of some sort. It would be foolish to just trade without really thinking. While typical traders look at charts as nothing but bars and lines, rich traders look at them as pictures of other traders that line up as they move into or away from a certain buying act. They always picture in their mind that something is going to happen whenever they look at a particular behavior of a chart.
Before engaging in a certain trade, they identify the right spots to enter, but also look for a quick exit strategy, should something go wrong – that’s one of the traits of successful traders. Novice traders are often too fast to get into a good trade because of too much excitement.
Great traders don’t think like that. If they can’t tell where the exit points are in a chart, whether it’s an increase or a decrease, they don’t get in, it’s power wisdom at play there. They gain big time by pointing out entrance and exit points clearly.
Learning from mistakes by moving on quickly
As you gain more trading experience, you might experience successive trades like 4 to 6 times that are so against what you hope for. Conversely, you might also encounter successive trades that go with you in a very positive way. This is natural. You have to absorb that in a statistical manner and accept that stuff like that could happen again and again.
When they do, you have to know that it’s not because you are interpreting the market in the wrong way. It is simply because the market is just unpredictable at times that even the smartest analysts could end up very wrong too.
Although the importance of reading the charts right is emphasized in the previous item, you have to acknowledge that they don’t work 100% of the time. Experts even claim that they just work 60% in most cases. Shocking and disappointing, right? But that’s one of the realities that you just have to accept.
Another thing about big-time traders is that as long as there have been a series of wins with their past methods, those methods will prove in time that they will be effective again. They are not bothered by some of the losses they get as long as their previous statistics prove them to be profitable.
In dealing with the lows and disappointments of your previous trading, you have to think about those moments when the odds are in your favor. Learn from your mistakes but be quick to move on, there are better opportunities that ahead that await you.
This was very much informative article, specially for me. Having patience is the most important thing to be successful I think. But sometimes I can't perceive that.😪